Liquidation: when a firm ceases trading and its assets are sold for cash.
Insolvent: when a business cannot meet its short-term debts.
Net cash flow: sum of cash payments to a business (inflows) less the sum of cash payments made by it (outflows).
Cash outflows: payments in cash made by a business, such as those to suppliers and workers.
Cash inflows: payments in cash received by a business, such as those from customers (debtors) or from the bank, e.g. receiving a loan.
Where does working capital come from?
How much is needed?
Forecasting cash inflows
Forecasting cash outflows
Structure of cash flow forecasts