Business Studies Junior Cycle

Which of the following is an example of a cash in-flow for a business?

• payment to suppliers

• paying back a loan to a bank

• payment from debtors

• purchase of fixed assets

INAC’s gross profit for July was:

• €2,000

• €1,500

• €500

• €2,500

Which of the following is the value of x? ($000)

• €2

• €4

• €6

• (€2)

The monthly net cash flow for a business is calculated by:

• sales revenue - cost of goods sold

• total cash in - total cash out

• total cash out - total cash in

• total cash in - cost of goods sold

The closing bank balance is calculated by:

• opening bank balance + cash out-flow
• opening bank balance + cash in-flow
• opening bank balance + net cash flow
• net cash flow + gross profit

Explain why Businesses prepare Cash Flow Forecasts?

Look at the extract from this cash flow forecast and answer the questions that follow:

(a) Do you think this is a good cash flow?

(b) Can you suggest a suitable source of finance for this organisation to help with cash flow?

(c) What percentage of total payments does April represent?