Cash-flow Forecasting & Working Capital IGCSE Business studies

At the end of the lesson, students should be able to:
Explain Cash-flow forecasting and working capital. Identify and explain the
importance of cash and of cash-flow forecasting: • Why cash is important to a
business. • What a cash-flow forecast is, how a simple one is constructed and
the importance of it. • Amend or complete a simple cash-flow forecast. •
How to interpret a simple cash-flow forecast. • How a short-term cash-flow
problem might be overcome, e.g. increasing loans, delaying payments, asking
debtors to pay more quickly. Working capital: • The concept and importance
of working capital
Answer the Questions provided with Answers at the end of the presentation.