# data[].attributes.body
1. Identify what makes-up a cash-flow​

2. Be able to work out relevant cash flow calculations​

3. Analyse and interpret cash flow​

# data[].attributes.body
All students will list and describe the components of a cash flow statement.​

Most students will perform key cash flow calculations, such as calculating net cash flow.​

Some students will analyze cash flow data to identify trends and potential financial issues. ​

# data[].attributes.body
Cash in a business is the notes and coins they have and also the money in the bank.​

Why is cash important? ​

# data[].attributes.body
If a business does not have cash then the following problems could occur. ​

# data[].attributes.body
Cash is vital to a businesses success and includes notes, coins and money in the bank.​

​

Cash flow is: ​

The flow of money into and out of a business​

# data[].attributes.body
Cash outflows: Cash outflows is the cash going out of a business (the payments it makes to others)

Cash Inflows: cash inflows are the cash coming into a business​

​

​

​

​​

​

​

​

​

# data[].attributes.body
Bridget and Brendan run a small B&B in Brighton. During the summer months business is booming but earlier in the year Bridget struggles to make ends meet. She has bills to pay and a mortgage on the B&B but is lucky to have one or two paying customers per week. Brendan tells her not to worry as bookings for the summer are being made fast and they look likely to be fully booked from May right through to September. Bridget is worried this may be too late and tells Brendan “it is right now that we have cash flow problems”.​

Question time​

1. What is meant by the term ‘mortgage’? (2 marks)​

2. What is meant by the term ‘cash flow problem’? (2 marks)​

3. Explain the cause of Bridget and Brendan’s cash flow problem. ​

(3 marks)​

​

# data[].attributes.body
If a business does have cash flow problems this can be serious and they may need to take corrective action.​

By serious we mean very serious as businesses do fail as a result of cash flow problems.​

What would happen if at the end of the week there was not enough cash to pay the workers, purchase new stock, fill the van with petrol etc?​

So it is important to look for solutions​

Can you think of any solutions?​

# data[].attributes.body
Warm-Up Question:​

"If a company has consistent high sales but continues to struggle with cash flow, what underlying factors could be causing this discrepancy? Consider aspects beyond just revenue."​