Using Cash-flow Forecasting Flashcards Preview

Planning and Financing A Business > Using Cash-flow Forecasting > Flashcards

Flashcards in Using Cash-flow Forecasting Deck (5):

Factors influencing cash-flow problems

-amount of cash held at the beginning of the cycle
-length of time required to convert inputs into outputs
-level of credit payments by consumers


Sources of information for a cash flow forecast

-previous forecasts
-consumer research


Causes for inaccuracies

-changes in economy
-changes in consumer tastes
-inaccurate market research


Structure of cash flow forecasts

Cash inflow
Cash outflow
Net cash flow (cash inflows-cash outflows)
Opening balance and closing balance


Why business forecast cash -flow

-identify cash-flow problems before they happen
-guide firm to appropriate action
-make sure sufficient cash is available for payments