• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Cash Flow Report

Extracts from this document...


´╗┐Unit 5 M1 Nasimsadat Moeindarbari Dear Apu, As you asked me, I prepared a 12 month cash flow forecast to enable you to manage your cash. As I did that, I find out that your cash flow forecasting is worrying and you should change some of your expenses. As you can see in the cash flow forecast that I prepared for you, the closing balance in June is -1820 which is not good at all. The closing balance in June shows that after 1 year with all your sales and expenses, you didn?t get any profit at all and also you loss 1820. There are some problems in your cash flow forecast: 1. ...read more.


(This means you are in debt to the bank.) 4. Another problem that I saw in your cash flow forecasting is the quarterly payments. This causes a big one off bills which is hard to pay. That means every 3 months you have to pay a large amount of money for your expenses. So this could be hard for you to pay all by one payment. 5. The last thing is that your closing balance is getting worse. From December your closing balance is almost decreasing and at the end of the year, June, you have negative closing balance. I think the causes of these problems are as follow: 1. ...read more.


and at the end of the month he/she will get 1200 which is £300 less than the one you pay for your assistance that you already have. 3. The other one is that you pay a lot of money for the raw materials. I think it is better to change your supplier to a cheaper one which decreases your expenses. 4. You also can increase your price so you will get more money. These were the problems and if it doesn’t get fixed then the business wouldn’t survive. Because each year you get negative closing balance which means you are in debt and after 2 or 3 years you have lots of debts to pay so you cannot afford to run your business anymore. Kind Regards, Nasim ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. Finance And Cas Flow

    This means there are no constraints of using the money as it is the individuals own that they are investing. This is an internal source of finance. (An example of a sole trader is the small corner shop shown in the picture on the right.)

  2. A2 Business CourseWork

    It is important to balance this correctly to ensure you achieve maximum overall profit. The prices are generally set by a business or its competitors which the business will have to try and match. * Competition: Entering an already exiting profitable market may sound appealing; however you have to bear in mind the existing completion.

  1. In this assignment I will be explaining in detail the importance of cash flow, ...

    in cash and in stock or debtors that could soon be turned into cash. A business that cannot pay its current liabilities may be forced to close. Current ratio is calculated as: Current assets / current liabilities = current ratio (expressed as x: 1)

  2. Finance, cash flow and insolvency

    All the profit he made, when he was trading as a sole trader can be used for expansion. Bank overdraft: He can agree an overdraft limited with the bank, so he can spend a bit more then he has in the bank.

  1. The company I'm reporting on is Kraft Foods Incorporated - accounting principles.

    The next highest is their inventory (raw materials and finished product). This accounts for about 43% of total current assets. This also makes sense since with Nabisco came more inventory. The two together represent almost 93% of total current assets. The Company's most significant current liabilities are their accrued liabilities.

  2. Unit 5 D1 - example of how a business may deal with cash flow ...

    lot and there would have not been a negative closing balance of £1755.60. In the month of October there opening balance was negative. The total cash available to them was £11180.34 but they spent £12010.52 on outflows. Although they did not spend any money on any sort of equipment but still the closing balance was -£830.18.

  1. Estimate the cost of equity appropriate for the evaluation of the incremental cash flow ...

    For further details please refer to Appendix 2. It had resulted on NPV being negative ? 3,703 thousand USD. 3.2 With laminate technology Case defines us some cost reductions and benefits such as graphite cost elimination, tax benefits and power cost savings, since 2,25 mln.

  2. I am going to produce a report which assesses the working capital management of ...

    allowing managers to fill stores with as many different types of merchandise as possible. "With automatic tracking of stock we can get a perfect picture of the goods we have on the sales floor and in the warehouse," he said. "If we can improve data accuracy, we can replenish accurately."

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work