3.7 Cash Flow

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/8

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

9 Terms

1
New cards

Cash flow

Payments received and made by a firm

2
New cards

Net cash flow

PRB - PMB

(payments received by business - payments made by business)

3
New cards

Working capital

Funds available in business to meet day-to-day needs

4
New cards

Cash flow forecasts

Prediction of future cash inflows, outflows and net cash flows for a specific time period

5
New cards

List the steps for constructing a cash flow forecast

  1. Opening Balance

  2. Cash inflow

  3. Cash outflow

  4. Net cash flow

  5. Closing balance

6
New cards

Investment

Purchase of a fixed asset

7
New cards

List some reasons for poor cash flow

  • Poor stock management

  • Poor pricing strategy/low sales

  • Firm is expanding too fast

  • High expenses

8
New cards

List some ways to increase cash flow

  • Effective debt collection

  • Cash transactions only

  • Going public

  • Loans (preferrable long-term)

9
New cards

List some ways to reduce cash outflow

  • Better stock management

  • Reducing expenses

  • Switching to cheaper supplies