Photo AI

The following is an extract from a cash flow forecast - Edexcel - GCSE Business - Question 17 - 2018 - Paper 1

Question 17

The following is an extract from a cash flow forecast. Fill in the three blanks to complete the cash flow forecast. Cash inflow Cash outflow Net cash flow Opening ... show full transcript

Worked Solution & Example Answer:The following is an extract from a cash flow forecast - Edexcel - GCSE Business - Question 17 - 2018 - Paper 1

Step 1

Cash outflow

96%

114 rated

Answer

To find the cash outflow for February, we note that the net cash flow is calculated as:

$\text{Net Cash Flow} = \text{Cash Inflow} - \text{Cash Outflow}$ So, for February:

$12 = 26 - \text{Cash Outflow}$ Solving for Cash Outflow gives us:

$\text{Cash Outflow} = 26 - 12 = 14$ Thus, the cash outflow for February is 14.

Step 2

Net cash flow for March

99%

104 rated

Answer

For March, we calculate the net cash flow as follows:

$\text{Net Cash Flow} = \text{Cash Inflow} - \text{Cash Outflow}$ Plugging in the values:

$\text{Net Cash Flow} = 32 - 83 = -51$ So, the net cash flow for March is -51.

Step 3

Closing bank balance for February

96%

101 rated

Answer

The closing bank balance for February is calculated as:

$\text{Closing Bank Balance} = \text{Opening Bank Balance} + \text{Net Cash Flow}$ Using the values provided:

$\text{Closing Bank Balance} = 32 + (-14) = 18$ Therefore, the closing bank balance for February is 18.

Join the GCSE students using SimpleStudy...

97% of Students

Report Improved Results

98% of Students

Recommend to friends

100,000+

Students Supported

1 Million+

Questions answered

;