Cash flow forecasting

Question 1

Equation for net cash flow

Answer 1

Inflows-outflows

Question 2

Equation for closing balance

Answer 2

Opening balance + net cash flow

Question 3

2 Benefits of cash flow forecasting

Answer 3

Predicts cash shortages

See their expenses

Question 4

2 disadvantages of cash flow forecasting

Answer 4

External factors can affect it

It’s an estimate