Chapter 26​ Cash flow Forecasts​ by aisha ali https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh en-us 2024-09-18 17:48:11 UTC 2024-09-18 18:38:19 UTC hello@padlet.com Lesson Objectives: edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126110658

  • Identify what makes-up a cash-flow​

  • Be able to work out relevant cash flow calculations​

  • Analyse and interpret cash flow​

    • ]]>     2024-09-18 18:05:55 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126110658     Outcomes:​ edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126113037

    • 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. ​


    ]]>     2024-09-18 18:07:28 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126113037     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126131355 Cash in a business is the notes and coins they have and also the money in the bank.​


    Why is cash important? ​

    ]]>     2024-09-18 18:18:52 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126131355     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126150616 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."​

    ]]>     2024-09-18 18:30:35 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126150616     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126156229 If a business does not have cash then the following problems could occur. ​


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  • Cash is vital to a businesses success and includes notes, coins and money in the bank.​

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    • Cash flow is: ​

    The flow of money into and out of a business​

    ]]>     2024-09-18 18:35:18 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126157672     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126159032 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​

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    ]]>     2024-09-18 18:36:02 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126159032     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126161829 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)​

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    ]]>     2024-09-18 18:37:55 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126161829     edtechbusinessecoacct https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126162819

  • 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?​

    • ]]>     2024-09-18 18:38:39 UTC https://padlet.com/edtechbusinessecoacct/8osbyp91h7ov6rkh/wish/3126162819