Rahatur Rouf
Unit 5 – Task 2
P3 M1 D1
P3:
M1:
For this merit task, I will be analysing the results above shown in the cash flow table(P3)
based on City Westminster College (CWC). A cash flow is simply defined as the inflows and
outflows of finance over a period for a business. What a cash flow helps businesses do is
that is helps them identify what amounts of money was leaving the business and what it was
being used for, as well as what they are receiving from sales. It also shows them what money
they have I their closing and opening balance and shows them if they have made a profit in
that month or not. This information can be very beneficial for businesses as it shows them
where they are going wrong and they can improve. If they are doing nothing wrong the
information is still valuable as the business can look at areas the business is doing the best
and use that information to apply it during times they are not.
January
In the first month of the cash flow, we can see that CWC started with an opening balance of
£2,000. this is the money they may have made from the previous year. We can also see that
the college had the sales of£18,000. This was the only inflow the college had during January.
These sales could have been from products the college sells to students and other externals.
Every business tends to spend a few variables such as rent, wages and insurance. These are
costs that run throughout the time the business or organisation is running. They don’t tend
to change for a long time. Wages can change whenever there is a new recruitment or when
someone leaves. This can either increase the outflow of wages or reduce it. The wages in
CWC during January shows to be £4,650, this is a constant outflow for the rest of the year as
well. Whereas, this could change. The rent is also fixed throughout the year at £1,500 per
month. This could change over time if the rent taker changes the price or the college pays
for more land, it could also be for other reasons. The equipment has no data on the cash
flow as this could be something the college has spent on previously. CWC also need to pay a
1
Unit 5 – Task 2
P3 M1 D1
P3:
M1:
For this merit task, I will be analysing the results above shown in the cash flow table(P3)
based on City Westminster College (CWC). A cash flow is simply defined as the inflows and
outflows of finance over a period for a business. What a cash flow helps businesses do is
that is helps them identify what amounts of money was leaving the business and what it was
being used for, as well as what they are receiving from sales. It also shows them what money
they have I their closing and opening balance and shows them if they have made a profit in
that month or not. This information can be very beneficial for businesses as it shows them
where they are going wrong and they can improve. If they are doing nothing wrong the
information is still valuable as the business can look at areas the business is doing the best
and use that information to apply it during times they are not.
January
In the first month of the cash flow, we can see that CWC started with an opening balance of
£2,000. this is the money they may have made from the previous year. We can also see that
the college had the sales of£18,000. This was the only inflow the college had during January.
These sales could have been from products the college sells to students and other externals.
Every business tends to spend a few variables such as rent, wages and insurance. These are
costs that run throughout the time the business or organisation is running. They don’t tend
to change for a long time. Wages can change whenever there is a new recruitment or when
someone leaves. This can either increase the outflow of wages or reduce it. The wages in
CWC during January shows to be £4,650, this is a constant outflow for the rest of the year as
well. Whereas, this could change. The rent is also fixed throughout the year at £1,500 per
month. This could change over time if the rent taker changes the price or the college pays
for more land, it could also be for other reasons. The equipment has no data on the cash
flow as this could be something the college has spent on previously. CWC also need to pay a
1
