Mastering Cash Flow Forecasting

• Tourism
• Foundation Degree

Cash Flow Forecasting 

and 

users of Financial Statements 

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 

Activity - The Apprentice 

Cash flow forecast - revision 

www.bbc.co.uk

Name one user of financial statements

Activity 2 - Dragon's Den 

External or Internal users?

Activity 3 - Pitch 

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 

Class test 

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

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.

Importance of Cash Flow Forecasting

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

Components of Cash Flow Forecast

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

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.

Activities 

A Day in the Life 

Group - Cash flow statues 

https://wordwall.net/resource/698359/cash-flow-forecast-activity

Board game - groups

Activity 1 - Hotel and restaurant 

Construct a cash flow forecast individually - paper based.

Activity 2 - Wedding Venue Excel sheet

Add the Excel formula:

=SUM (a5:a9)

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

=MIN (a9-a5)

= (a9-a5)

Activity 3 Revision 

Statement of Comprehensive Income 

Statement of Financial Position