Mastering Cash Flow Forecasting

Cash Flow Forecasting 
and 
users of Financial Statements 
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TourismFoundation Degree

This lesson contains 21 slides, with interactive quiz, text slides and 1 video.

time-iconLesson duration is: 60 min

Items in this lesson

Cash Flow Forecasting 
and 
users of Financial Statements 

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Learning Objective
Understand the importance of cash flow forecasting and learn how to create a basic cash flow forecast.

Be able to describe the users of financial statements.

Know the requirements of the class test 


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Activity - The Apprentice 
Cash flow forecast - revision 

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Slide 4 - Link

Name one user of financial statements

Slide 5 - Mind map

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Activity 2 - Dragon's Den 

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External or Internal users?

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Activity 3 - Pitch 

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Activity 4 - Word Doc
Describe if they are internal or external and why they would need to see information on each statement:

Investors 
Government 
Employees 
Lenders 
Creditors
Customers 
General public 
Analysts 


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Class test 
  1. Profit and loss 
  2. Balance sheet 
  3. Cash flow forecast 
  4. Users of these statements and why 

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What is Cash Flow Forecasting?
Cash flow forecasting is the process of estimating the timing and amount of cash inflows and outflows over a specific period.

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Importance of Cash Flow Forecasting
Cash flow forecasting helps businesses anticipate potential cash shortages or surpluses, allowing for better financial planning and decision-making.

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Components of Cash Flow Forecast
A cash flow forecast typically includes projected sales, expenses, and timing of payments and receipts.

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Creating a Cash Flow Forecast
Step 1: Start with opening cash balance. 
Step 2: Add cash inflows. 
Step 3: Subtract cash outflows. 
Step 4: Calculate closing cash balance.

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Slide 17 - Video

Activities 
A Day in the Life 
Group - Cash flow statues 
https://wordwall.net/resource/698359/cash-flow-forecast-activity
Board game - groups

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Activity 1 - Hotel and restaurant 

Construct a cash flow forecast individually - paper based.

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Activity 2 - Wedding Venue Excel sheet
Add the Excel formula:

=SUM (a5:a9)
=SUM (a5+a6+a7+a8+a9)

=MIN (a9-a5)
= (a9-a5)


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Activity 3 Revision 

Statement of Comprehensive Income 

Statement of Financial Position 

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