Week 8 P3 Cash Flow 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

In a cash flow cycle, which activities usually lead to cash outflows? (Select all that apply)

• a. Collecting accounts receivable

• b. Paying suppliers for inventory

• c. Paying interest on a business loan

• d. Receiving a customer deposit

• e. Paying taxes and utilities

1. In a manufacturing business, which components of the cash flow cycle are directly related to the production process? (Select all that apply)

• 1. a. Accounts Payable for raw materials

• 1. b. Accounts Receivable from customers

• 1. c. Inventory management and holding costs

• 1. d. Marketing expenses

• 1. e. Employee salaries

Lable the following cash flow cycle

Cash needed to pay for

Goods produced

Materials, wages ,rent

Cash payment received for goods sold

Goods Sold

Which financial statement is crucial for tracking and analyzing the cash flow cycle of a business? ​ (a)  

• Statement of Cash Flows
• Balance Sheet
• Profit and Loss Statement
• Income Statement

Match the following

• Accounts Receivable

• The difference between cash inflows and cash outflows for a specific period.

• Cash Flow Forecast

• The money a business receives from customers for goods or services sold on credit.

• Net Cash Flow

• The estimated prediction of a business's future cash receipts and expenditures over a specified period.

• Cash Inflows

• The money that comes into a business, such as revenue from sales, loans, or investments.