Break-even and cash flow forecast

the customer pays at the time of purchase

• cash sales

• credit sales

the customer pays in a pre-agreed period after the sale, for example 30 days

• credit sales

• cash sales

bank loans to fund the purchase of assets such as machinery and vehicles

• loans

• credit sales

money invested from entrepreneurs of shareholders when a business is first set up or looks to expand

• capital introduced

• loans

the sale of items owned by the business which are no longer needed in order to bring a short-term cash injection into the business

• sale of assets

• bank interest received

interest paid by the bank on credit balance

• bank interest paid on credit balance

• capital gains

items purchased by a business and paid for at the time of purchase

• cash purchase

• credit purchase

items purchased by a business and paid for at a later point in time

• credit purchase

• cash purchase

non-current assets that a business is likely to keep for more than one year such as machinery and vehicles

• purchase of assets

• value added tax

businesses that are VAT registered must pay VAT to HM Revenue & Customs, and this should be shown in the cash flow forecast bank interest paid

• Value added tax

• Revenue & Customs