What are cash-flow Forecasts?
- Cash-flow forecasts predict when cash comes in and out of the business.
What is a healthy Cash-flow?
- A healthy cash flow means that the business has enough cash to cover its bills.
What is a Inflow?
- Money coming into the business.
What does insolvency mean?
- when the business runs out of cash to pay bills.
Why is cash important?
- Cash is important because the business needs to pay bills and expenses.
Why is Planning Important for the business?
- Helps predict furture income and expenses.
Why is Monitoring Important for the business?
- Tracks Cash Regulary to spot problems easy.
Why is Control Important for the business?
- Helps control overspending.
Why is Target setting Important for the business?
- helps set goals.
What is a common Cash-flow Problem?
- Outflows are Higher then Inflows.
Name a pro of cash-flow?
- Can be used as part of a business plan to help raise finance.
Name a con of cash flow?
- It is based on a forecast, so it can be wrong.
What Are varaiable costs and give an example?
- Costs that change.
- FE: Raw materials.
What Are Fixed costs and give an example?
- Costs that do not change.
- FE: Items produced.
What are Semi-varaible costs and give an example?
- Mixture of fixed and variable costs.
- FE: Mobile phone contract.
What is the formula for Total costs?
- Fixed + Variable.
What is the formula for Total Revenue?
- Price x Quanitity.
What is sales in Value?
- Sales expressed as a value (£).
What is sales in volume?
- Sales in Quantity.
What is the opening balance?
- Is how much is available at the start of the month.
What is the formula for Total cash available?
– Opening balance + total inflows.
What is the formula for Closing balance?
- total cash available - total outflows.
What is the formula for Net cash-flow?
- inflows - outflows.
What is the formula for contribution per unit (CPU)?
- Price - Variable per unit.
