Cash flow forecasts

An estimate of the likely cash inflows and outflows in a business = ???

• Break even point

• Statement of comprehensive income

• Profit and loss

• Cash flow forecast

A business uses a cash flow forecast to ????

• promote an enterprise

• segment the correct market

• identify potential shortfalls in cash balances

• pinpoint what the break even point is

If a business runs out of cash and is not able to obtain new finance, it will become ????

• limited

• insolvent

• lucrative

• economic

A cash flow forecasts help to make sure that a business can afford to pay ____ and employees.

• bribes

• consumers

• customers

• suppliers

Which is an example of a cash inflow ???

• Bank loan repayments

• Bank loan received

• Salaries

• Utilities

Which is an example of a cash outflow???

• Bank interest received

• Rental income

• Sales revenues

• Tax

Which is an an example of a cash inflow???

• Rent payable

• Refund issued to customer

• Raw materials

• Bank interest received

The cash flow forecast predicts the _____ of the business over a future period.

• net cash flows

• profit and losses

• dividend payments

• customer satisfaction levels

March closing balance = £3,000.

March net cash flows = £2,500

April opening balance = ????

• £3,500

• £3,000

• £500

• (£2,000)

June closing balance = £5,000

June net cash flows = £4,000

July opening balance = ????

• £4,000

• £1,000

• £9,000

• £5,000