1
Q
What is cash flow?
A
Movement of money into and out of a business
2
Q
What is the equation for net cash flow?
A
Total inflow - total outflow
3
Q
What is the equation for closing balances?
A
Total inflow - total outflow + opening balance
4
Q
What are the indication of a good cash-flow position?
A
Net cash flow is positive
The closing balances are positive
Opening balances are positive
5
Q
What are the ways to improve cash flow?
A
Increasing cash inflow
Decreasing cash outflow (Variable and fixed costs)
