Cash Flow Forecasting

_________ is the money coming into a business

• Net cash flow

• Cash inflow

• Cash outflow

• Opening balance

_______ is the money going out of a business

• Net cash flow

• Cash inflow

• Cash outflow

• Closing balance

How do you calculate net cash flow?

• Cash outflow - Cash inflow

• Cash inflow + cash out flow

• Cash inflow - Cash outflow

• Cash inflow - opening balance

A cash flow forecast is an accurate representation of money coming in and out of the business

• True

• False

Is the following an example of positive cash flow or negative cash flow?

• Positive

• Negative

paying the rent would be an example of

• cash inflow

• cash outflow

What is the purpose of a cash flow forecast?

• To calculate profit or loss

• To estimate whether a business has enough cash to pay their bills

• To find out when customers are going to pay their invoices

• To see if the business will break even

Cash is not the same as profit. Why?

• Cash may come from loans and investors, profit only comes from sales revenue

• They are the same

• Cash is used to pay the bills within a business

• Cash flow stops a business from going bankrupt

Ideally, the net cash flow should be

• positive

• negative

Net cash flow + opening balance =

• Cash outflows

• Cash inflows

• The opening balance of the next month

• Closing balance