Cash Flow Forecast (Junior Cert Business Studies): Flashcards
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Practise the cards
15 cards from this deck
What is a cash flow forecast?
What is a cash flow forecast?
Plan predicting future income & costs over a period
Receipts in cash flow
Receipts in cash flow
Money coming into the business
Payments in cash flow
Payments in cash flow
Money going out of the business
Debtors definition
Debtors definition
Customers who owe money to the business
Creditors definition
Creditors definition
Suppliers who are owed money by the business
Working capital definition
Working capital definition
Money available for day-to-day business operations
Liquidity definition
Liquidity definition
Ability to meet short-term debts & obligations
Net cash formula
Net cash formula
Total receipts - Total payments
Closing cash becomes opening cash for...
Closing cash becomes opening cash for...
Next period/month
Cash flow benefit: timing awareness
Cash flow benefit: timing awareness
Shows when money will be received
Cash flow benefit: problem prevention
Cash flow benefit: problem prevention
Highlights potential cash shortages before critical
Managing surplus: reinvestment option
Managing surplus: reinvestment option
Upgrade equipment, improve premises, expand marketing
Managing surplus: debt option
Managing surplus: debt option
Pay off loans early to reduce interest payments
Addressing deficit: financing option
Addressing deficit: financing option
Use overdraft or short-term loans to bridge gap
Addressing deficit: revenue option
Addressing deficit: revenue option
Launch promotions/marketing to boost revenue quickly