Cash Flow Forecast Example

Net cash flow is:

• the total amount of money being transferred into and out of a business.

• the profit earned by a business after all expenses.

• the revenue generated by a business before expenses.

• the total assets owned by a business.

What is the opening balance in a cash flow forecast?

• The amount of cash at the start of the period

• The total revenue for the period

• The net profit at the end of the period

• The total expenses for the period

The formula for calculating the closing balance in a cash flow forecast is:

• Opening balance + Net cash flow

• Opening balance - Net cash flow

• Net cash flow - Opening balance

• Net cash flow + Opening balance

If the closing balance is negative, what could the business do?

• Increase sales

• Reduce expenses

• Take a loan

• All of the above

Sales forecasting is:

• a method to predict future sales

• a way to analyze past sales

• a tool for managing inventory

• a strategy for marketing

Sales forecasting is the process of _______ future revenue by predicting the amount of product or services a sales unit will sell in the next week, month, quarter, or year.

• estimating

• calculating

• guessing

• projecting

The purpose of sales forecasts is to:

• predict future sales and revenue

• analyze past sales performance

• determine customer satisfaction

• evaluate employee performance

Identify the factors that affect sales forecasts, such as consumer trends, economic variables, and actions of competitors.

• Consumer trends, economic variables, and actions of competitors

• Only consumer trends

• Only economic variables

• Only actions of competitors

Discuss the difficulties of sales forecasting.

• Sales forecasting is always accurate and easy to perform.

• Sales forecasting can be challenging due to market volatility and unpredictable consumer behavior.

• Sales forecasting is not necessary for business planning.

• Sales forecasting only depends on historical data.

Sales forecasting is a process used to predict future sales based on historical data, market analysis, and other factors. Which of the following is NOT typically used in sales forecasting?

• Historical sales data

• Market trends

• Customer feedback

• Astrological signs