Cash flow
- Created by: NathanielMorris
- Created on: 17-03-17 10:50
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- Cash Flow Forecasts
- Cash Flow Forecasts
- The prediction of future cash inflows & outflows showing the estimated cash balance at the end of each month
- They are important because...
- It identifieswhen shortfalls are likely to happen, and surplus funds are likely to become available
- Calculates the business' reserves, which could be invested in expansion or new equipment
- It shows whether there is enough cash available to pay salaries and settle debts on time
- A Cash Flow Statement uses actual inflows and outflows over a period of time (historical data- not a prediction
- Cash Flow Forecasts
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