Cash flow Flashcards
1
Q
What is cash flow?
A
Cash flow is the net inflows and outflows of a business over a specific time
2
Q
How to improve CFF?
A
Improve revenue
Changing Pricing Strats
Reducing overheads
cut costs
Sources of finance
3
Q
Net cash flow formula?
A
Cash inflows-outflows
4
Q
Closing balance formula?
A
Opening balance + Net cash flow
5
Q
Why should firms use CFF?
A
Predicts when you may have a liquidity problem
Ensures you can cover costs (Overheads)
6
Q
What are examples of poor Cash flow forecasting?
A
Poor sales
Over trading (too much stock)
Not managing Debtors/creditors
