5.5 Cash and Cash Flow

• Computing
• Upper Secondary (Key Stage 4)
• GCSE

5.5 Cash and Cash Flow

Why is cash important to a business?

What is the difference between cash and profit?

What cash do you have flow into (inflows) your account?

What cash do you have flow out of (outflow) your account?

What is the difference between cash and profit?

What are the main cash outflows of a business?

Why is it important to forecast cashflow?

January Inflows = £500
January Outflows = £250
Net Cash Flow = ??

1. £250
2. -£250
3. £500
4. £100

April Inflows = £1000
April Outflows = £250
April Net Cash Flow = ??

1. £550
2. -£450
3. £750
4. £1000

March Inflows = £500
March Outflows = £500
March Net Cash Flow = ??

1. £250
2. -£500
3. £500
4. £0

March Inflows = £500
March Outflows = £1500
March Net Cash Flow = ??

1. -£1000
2. -£500
3. £250
4. £0

February Opening Balance = £500
February Net cash flow = £1500
February Closing Balance = ??

1. £1250
2. -£500
3. -£1000
4. £2000

January Opening Balance = £250
January Net cash flow = -£1000
January Closing Balance = ??

1. £1250
2. -£750
3. -£1000
4. £2000

January Closing Balance = £1000
February Opening Balance = ??

1. £1250
2. -£750
3. -£1000
4. £1000