, GASHFLWS
and and
>
-
the flow of money in
of business in
the a
given
time period
Cashflow Problem >
-
(Liquidity problem) there is insufficient cash in the business for it to settle it's debts obligations when
they come due .
↳ balance
(negative closing bank
Causes : c o sts revenue
overtrading (when business
expands too quickly out did not
expand) stock ) produce
pilling much
a more when revenue so so
paying money
=
, , ,
,
they left unsold (labour be
paid if did not produce) unforeseen expedenture/problem such as -
operating
occurs
cycle and suppliers still
slow must a mach
a re
,
even you ,
breaking down
,
so you
need to
pay extra to fix) , unexpected drop in demand , investing too much on fixed assets , poor financial management (not
using cash
forecast properly) .
financial facility 'headroom
Improving cashflow :
Organize resources
, arrange bank overdraft to
give so it can
pay
its debts
,
bank loan
Corganise ,
raise investment sell shares
make business more
profitable ,
increase
cashflows from revenue (increase selling price , increase
quantity) ,
reduce cash
outflows on costs
,
cheaper supplier ,
reduce wastage of direct costs
,
reduce
inventory (sell to receive Cash) , speed operational cycle ,
sell debt
,
sell
unnecessary fixed assets (unused machines
cashflow forecasting :
uses/benefits I
advanced of future
warning likely cash
shortages
additional finance
limitations
based on assumptions ,
further in future ,
less accurate
does not consider non-cash items
net cashflow >
-
cash inflows -
Cash outflows
cashflow Screcasting >
-
estimating the future cashflows and cash balances of the business
TYPES : inflow : cash sales
, receipts from trade debtors ,
sales of fixed assets ,
Grants
outflow :
wages , repayment of loans
,
tax on
profits ,
dividends
Business transactions credit transactions
to business are
always
overtrading + business
expand too
quickly no
having financial resources
Stock business holds too before
pilling sold
> muc
inventory
-
,
and and
>
-
the flow of money in
of business in
the a
given
time period
Cashflow Problem >
-
(Liquidity problem) there is insufficient cash in the business for it to settle it's debts obligations when
they come due .
↳ balance
(negative closing bank
Causes : c o sts revenue
overtrading (when business
expands too quickly out did not
expand) stock ) produce
pilling much
a more when revenue so so
paying money
=
, , ,
,
they left unsold (labour be
paid if did not produce) unforeseen expedenture/problem such as -
operating
occurs
cycle and suppliers still
slow must a mach
a re
,
even you ,
breaking down
,
so you
need to
pay extra to fix) , unexpected drop in demand , investing too much on fixed assets , poor financial management (not
using cash
forecast properly) .
financial facility 'headroom
Improving cashflow :
Organize resources
, arrange bank overdraft to
give so it can
pay
its debts
,
bank loan
Corganise ,
raise investment sell shares
make business more
profitable ,
increase
cashflows from revenue (increase selling price , increase
quantity) ,
reduce cash
outflows on costs
,
cheaper supplier ,
reduce wastage of direct costs
,
reduce
inventory (sell to receive Cash) , speed operational cycle ,
sell debt
,
sell
unnecessary fixed assets (unused machines
cashflow forecasting :
uses/benefits I
advanced of future
warning likely cash
shortages
additional finance
limitations
based on assumptions ,
further in future ,
less accurate
does not consider non-cash items
net cashflow >
-
cash inflows -
Cash outflows
cashflow Screcasting >
-
estimating the future cashflows and cash balances of the business
TYPES : inflow : cash sales
, receipts from trade debtors ,
sales of fixed assets ,
Grants
outflow :
wages , repayment of loans
,
tax on
profits ,
dividends
Business transactions credit transactions
to business are
always
overtrading + business
expand too
quickly no
having financial resources
Stock business holds too before
pilling sold
> muc
inventory
-
,
