Cash flow

Question 1

What is cash flow?

Answer 1

Cash flow is the net inflows and outflows of a business over a specific time

Question 2

How to improve CFF?

Answer 2

Improve revenue
Changing Pricing Strats
Reducing overheads
cut costs
Sources of finance

Question 3

Net cash flow formula?

Answer 3

Cash inflows-outflows

Question 4

Closing balance formula?

Answer 4

Opening balance + Net cash flow

Question 5

Why should firms use CFF?

Answer 5

Predicts when you may have a liquidity problem

Ensures you can cover costs (Overheads)

Question 6

What are examples of poor Cash flow forecasting?

Answer 6

Poor sales
Over trading (too much stock)
Not managing Debtors/creditors