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An extract from Marble & Sons cash flow forecast for September is shown below - OCR - GCSE Business - Question 8 - 2022 - Paper 1

Question 8

An extract from Marble & Sons cash flow forecast for September is shown below. Net cash flow £-2600 Opening balance £7300 Closing balance £? Marble & Sons' open... show full transcript

Worked Solution & Example Answer:An extract from Marble & Sons cash flow forecast for September is shown below - OCR - GCSE Business - Question 8 - 2022 - Paper 1

Step 1

Opening balance calculation

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Answer

To determine the opening balance, we can apply the cash flow formula:

$\text{Closing Balance} = \text{Opening Balance} + \text{Net Cash Flow}$

Rearranging this, we find:

$\text{Opening Balance} = \text{Closing Balance} - \text{Net Cash Flow}$

Substituting the provided values:

Net Cash Flow = £-2600
Closing Balance = £7300

Thus:

$\text{Opening Balance} = 7300 - (-2600)$

This simplifies to:

$\text{Opening Balance} = 7300 + 2600 = 9900$

Step 2

Final answer selection

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Answer

From the calculation, the opening balance for September is expected to be £9900. Therefore, the correct option is D £9900.

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An extract from Marble & Sons cash flow forecast for September is shown below - OCR - GCSE Business - Question 8 - 2022 - Paper 1

Worked Solution & Example Answer:An extract from Marble & Sons cash flow forecast for September is shown below - OCR - GCSE Business - Question 8 - 2022 - Paper 1

Opening balance calculation

Final answer selection

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