3.5.2 Cash Flow Forecasting

What is the total cost incurred by the business for a £3000 order?

• £1000

• £2000

• £3000

• £4000

How long does it take for the business to produce the £3000 order?

• One week

• Two weeks

• One month

• Two months

What is the credit period for the payment of the £3000 order?

• One week

• Two weeks

• One month

• Two months

How much profit does the business generate from the £3000 order?

• £500

• £1000

• £1500

• £2000

When is the business most likely to have cash flow problems?

• January

• February

• March

• April

What is the total cash inflow for January?

• £18,000

• £5,000

• £35,000

• £40,000

What is the total cash outflow for February?

• £20,000

• £23,000

• £17,000

• £18,000

What is the net monthly cash flow for March?

• £18,000

• £(18,000)

• £3,000

• £(2,000)

What is the closing balance for April?

• £3,000

• £21,000

• £(15,000)

• £18,000

What is the opening balance for February?

• £5,000

• £3,000

• £(15,000)

• £21,000