Cash Flow Forecast

Question 0

Define cash flow statement?

Answer 0

To show what has happened in terms of income and expenditure over the past 6months/year

Question 1

Define cash flow forecast?

Answer 1

It is a prediction of income and expenditure over the next 6months/year

Question 2

Reasons for a cash flow forecast?

Answer 2

• helps identify shortfall
• identify surpluses
• helps plan for the future

Question 3

Define receipts?

Answer 3

This will be and estimate of the predicted sales revenue for each month.

Question 4

Formula for receipts?

Answer 4

Amount sold * selling price

Question 5

Define payments?

Answer 5

This section will detail the payments that the firm expects to have to make during the year.

Question 6

Define net cash flow?

Answer 6

This will show the difference between the total payments and the receipts

Question 7

Define opening balance?

Answer 7

This shows the money that a firm has carried over from a previous month

Question 8

Define closing balance?

Answer 8

This is the difference between the net cash flow figure and the opening balance