Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and...

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Cash Flow Forecasting AS Business Studies

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Page 1: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Flow Forecasting

AS Business Studies

Page 2: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Aims and Objectives

Aim:• Understand cash inflows and outflows

Objectives:• All: Recap on costs, revenues and profits• All: Define cash flow forecasting• Most: Distinguish between cash inflows and

outflows• Some: Assess the advantages of cash flow

forecasting.

Page 3: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Starter

Define the following:• Costs

• Revenues• Profits

Describe the relationship between costs, revenues and profits.

Page 4: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

5 Mark Question

Steve owns and runs a car customising business. Here are his financial figures.

Page 5: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

5 Mark Question

Page 6: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

What is cash flow?

Task: In groups determine a definition for cash flow.

Definition:The total cash payments (inflows) into a business minus the total cash payments (outflows).

Page 7: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Why is Cash Flow Important?

• Round Robin

• Why is cash flow important?

• Brainstorm Ideas.

Page 8: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Importance of Cash

Flow

Timing of Receipts (inflows)

Obtaining Finance

Suppliers and

Creditors

Timing of Payments (outflows)

Page 9: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Flow Forecasting

Definition:

• An estimate of a firm’s future cash inflows and outflows.

• Essential for a businesses’ financial planning.

• Could be based on historical data, or primary/secondary research or predictions.

Page 10: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Flow Quiz

• Decide whether each item is an inflow or an outflow.1. Owners capital injection2. Debtors Rent payment3. Electricity, gas, water4. Wages5. Cash purchases6. Loans received7. Interest repayments8. Raw Materials

Page 11: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Inflows

Inflow Description

Owners Capital Money put into the business by the owner. Easy to forecast.

Bank Loans Received Loans from bank, easy to forecast agreed with bank.

Customers cash purchases Difficult to forecast as depends on sales. Sales forecast?

Debtors PaymentsPayments from people who owe

money. Difficult to forecast, when will debtors pay?

Page 12: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Outflows

Outflows Description

Rent Easy to forecast

Electricity, Gas, Water Difficult to forecast as vary with customers/opening hours etc.

Wages / Salaries Could differ, could be the same.

Other Expenses Materials, etc.

Page 13: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Flow Forecast Modelling

• Young’s Sports Ltd

• Sort your cards into inflows and outflows on your table.

• Decide on where you think each item will go on your Cash Flow Forecast

Page 14: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Cash Flow Forecast of ...............................................................For the Period 01/2012 - 2/2012

JANUARY FEBRUARY

Forecast Forecast

CASH RECEIVED/RECEIPTS

TOTAL CASH IN £

EXPENDITURE

TOTAL CASH OUT £

NET CASH FLOW (TOTAL CASH IN – TOTAL CASH OUT)

OPENING BALANCE CLOSING BALANCE

Cash Flow Forecast Modelling

Page 15: Cash Flow Forecasting AS Business Studies. Aims and Objectives Aim: Understand cash inflows and outflows Objectives: All: Recap on costs, revenues and.

Plenary

• Define cash flow forecasting

• Why do you feel it is important to forecast cash flow for businesses?

Level 4: What do you feel the advantages are of producing a cash flow forecast?


Business Section: FinanceFurther Reading C.29 Keywords – cash flow, forecast, inflows, outflows, liquid, net cash flow. Class : Y11 Lesson Topic: Finance.

Business Section: FinanceFurther Reading C.29 Keywords – cash flow, forecast, inflows, outflows, liquid, net cash flow. Class : Y11 Lesson Topic: Finance.

STATEMENT OF CASH FLOWS 4th REQUIRED GAAP Statement. Covers a period of time (like an income statement). Focuses on: Inflows of CASH Outflows of CASH text.

STATEMENT OF CASH FLOWS 4th REQUIRED GAAP Statement. Covers a period of time (like an income statement). Focuses on: Inflows of CASH Outflows of CASH text.

CHAPTER 2: - Solution Manual & Test Bank Store · Web view2.6 The company’s AIS needed to provide a cash flow budget that clearly projected both inflows and outflows of cash. Such

CHAPTER 2: - Solution Manual & Test Bank Store · Web view2.6 The company’s AIS needed to provide a cash flow budget that clearly projected both inflows and outflows of cash. Such

Chapter 14 Statement of Cash Flows. What does it do for us? The statement of cash flows reports a firm’s major cash inflows and outflows for a period.

Chapter 14 Statement of Cash Flows. What does it do for us? The statement of cash flows reports a firm’s major cash inflows and outflows for a period.

Measuring the return from pharmaceutical innovation 2018 ......Measuring the return from pharmaceutical innovation 2018 | Methodology Model inputs: R&D cash outflows Cash outflows

Measuring the return from pharmaceutical innovation 2018 ......Measuring the return from pharmaceutical innovation 2018 | Methodology Model inputs: R&D cash outflows Cash outflows

CHAPTER 7 INTERNATIONAL CASH MANAGEMENT Objectives ...

CHAPTER 7 INTERNATIONAL CASH MANAGEMENT Objectives ...

Managing Cash Flow - Home - Enterprise Ireland · Cash Inflows – Cash Outflows ... Methods To Improve Cash Flow – Cutting Costs • Step 1: ... Managing Cash Flow & Financing

Managing Cash Flow - Home - Enterprise Ireland · Cash Inflows – Cash Outflows ... Methods To Improve Cash Flow – Cutting Costs • Step 1: ... Managing Cash Flow & Financing

Course Objectives Cash in business Cash Flow cycle Cash budgets – Genesis of Forecasting Cash budgets – Formatting Cash budgets – Short term Cash budgets.

Course Objectives Cash in business Cash Flow cycle Cash budgets – Genesis of Forecasting Cash budgets – Formatting Cash budgets – Short term Cash budgets.

Cash flow forecasting - IGCSE Business · What is Cash Flow???? Cash flow: the sum of cash payments to a business (inflows) less the sum of cash payments (outflows) Cash outflows:

Cash flow forecasting - IGCSE Business · What is Cash Flow???? Cash flow: the sum of cash payments to a business (inflows) less the sum of cash payments (outflows) Cash outflows:

Determinants of Corporate Cash Holdings andprr.hec.gov.pk/jspui/bitstream/123456789/6764/1/Muhammad_Faisal_Rizwan... · It documents that most often cash inflows and outflows of a

Determinants of Corporate Cash Holdings andprr.hec.gov.pk/jspui/bitstream/123456789/6764/1/Muhammad_Faisal_Rizwan... · It documents that most often cash inflows and outflows of a

Oklahoma Police Pension & Retirement System 2Q 2020.pdfCash Outflows Cash Inflows Net Cash Flows -18,997,422 11,017,864 -7,979,558 Summary of Portfolio Inception to Date (Category

Oklahoma Police Pension & Retirement System 2Q 2020.pdfCash Outflows Cash Inflows Net Cash Flows -18,997,422 11,017,864 -7,979,558 Summary of Portfolio Inception to Date (Category

LOS 2 Managing Cash Inflows and Outflows Learning Outcome Statement (LOS) define cash management understand why it is advantageous for firms to hold cash.

LOS 2 Managing Cash Inflows and Outflows Learning Outcome Statement (LOS) define cash management understand why it is advantageous for firms to hold cash.

The LOMA Society of Nebraska · Cash Outflows Total Operating Cash Outflows $463.79 Net cash provided (used) by operating activities $9,738.21 Cash flows from investing activities

The LOMA Society of Nebraska · Cash Outflows Total Operating Cash Outflows $463.79 Net cash provided (used) by operating activities $9,738.21 Cash flows from investing activities

11-1 Categories of Cash Flows Cash flow Inflows and outflows that result from transactions Cash account must increase or decrease Operating activities.

11-1 Categories of Cash Flows Cash flow Inflows and outflows that result from transactions Cash account must increase or decrease Operating activities.

Understanding and Solving for Small Business Cash Flow Needs · for the business when cash inflows don’t match necessary outflows. As businesses grow, ... Checks are still the preferred

Understanding and Solving for Small Business Cash Flow Needs · for the business when cash inflows don’t match necessary outflows. As businesses grow, ... Checks are still the preferred

76,689.79 3,394,428.97 5,769.715 - Muñoz Water District · 2015-01-31 · Other Bank Charges Total Cash Outflows Total Cash Provided by Financing Activities Cash Provided by Operating,

76,689.79 3,394,428.97 5,769.715 - Muñoz Water District · 2015-01-31 · Other Bank Charges Total Cash Outflows Total Cash Provided by Financing Activities Cash Provided by Operating,

Chapter 1 · Web viewThe statement of cash flows reports on the cash inflows and outflows from a company’s operating, investing, and financing activities. 28. Return on assets,

Chapter 1 · Web viewThe statement of cash flows reports on the cash inflows and outflows from a company’s operating, investing, and financing activities. 28. Return on assets,

FINANCIAL REPORT of the UNIVERSITY OF NORTH ...2011 2010 ASSETS AND DEFERRED OUTFLOWS Current Assets Cash and Cash Equivalents Cash on Hand $ 11,518.10 $ 16,905.55 Cash in Bank (360,103

FINANCIAL REPORT of the UNIVERSITY OF NORTH ...2011 2010 ASSETS AND DEFERRED OUTFLOWS Current Assets Cash and Cash Equivalents Cash on Hand $ 11,518.10 $ 16,905.55 Cash in Bank (360,103

KDFEF WORKING CAPITAL Unit : I V - shasuncollege.edu.in · the inflow and outflows of cash on a routine basis. ... Controlling inflow of cash or sources of cash. (a) Accelerating

KDFEF WORKING CAPITAL Unit : I V - shasuncollege.edu.in · the inflow and outflows of cash on a routine basis. ... Controlling inflow of cash or sources of cash. (a) Accelerating

INTRODUCTION: - · Web viewThe estimation of the cash inflows and cash outflows mainly depends on future uncertainties. The risk associated with each project must be carefully analyzed

INTRODUCTION: - · Web viewThe estimation of the cash inflows and cash outflows mainly depends on future uncertainties. The risk associated with each project must be carefully analyzed