cash flow forecast and management

Question 1

cash inflows

Answer 1

• loans from bank
• cash sales
• grants

Question 2

cash outflows

Answer 2

-wages and salaries
-repayment of loans
- tax on profits

Question 3

problems w cash flow forecasts

Answer 3

-sales = lower thane xpected
- customers dont pay on time
- costs higher than expected

Question 4

main causes for cash flow problems

Answer 4

-low profits
- excess inventory held

Question 5

how to manage cash flow problems

Answer 5

• manage working capital effectively
• choose right source of finance

Question 6

managing working capital

Answer 6

• effective working capital , focuses on
  inventory
  debtors
  creditors

Question 7

managing how much is owed by customers

Answer 7

• credit control
• selling off debts to debt collectors

Question 8

improving cash position

Answer 8

short term
- selling surplus fixed assets
- increase current liabiliites ( delay payments)

long term
increase long term liabilities
ugh idk