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

annual cash flow forecast

Extracts from this document...

Introduction

BTEC First Diploma in Business Unit 3 Investigating Financial Control Introduction: In this assignment i will prepare an annual cash flow forecast using monthly datas and analyse the implications of regular and irregular cash inflows and outflows for a business organisation. I will also evaluate how cash flows and financial recording systems can contribute to managing business finances. Task 1 a Cash flow: Cash flow relates to the amount of money received and spent in the goven period. Cash flow problems occur when the amount spent is greater than the amount received. Cash flow statement: A Cash flow statement are normally product in a little more detail than the summary statements. Cash flow forecast: Cash flow forecast means preparing a cash flow statement for the future with predicted inflows and outflows. This is always easier to do for an established business because managers have more experience and knowledge on which to base their decision. ( Reference: BTEC First Business 2nd edition, Carol Caryforth and Mike Neild, Page 108, 113 and 114) ...read more.

Middle

If whe have regular inflows and outflows that will be very good for our business because that would mean that we can plan better for our future cash flow. Task 2 c Down 2 u will be affected if the inflows and outflows are irregular because we will not know how much we would receive for the month and we will not be able to plan for our income for the next comin month. And it can also put our business in debits because if we dont make any profit or dont have our breakeven then we will not be able to pay for our stock and other payments that we have to pay every month. But if our inflows and outflows are regular it will not affect our business because we will exactly know how much we will make in the month and in some other month aswell and we can plan for the future form our business. Task 3 In this task i should make references for: * Seasonal variation: This will affect our business because in every season we generate a different cash inflow and outflow. ...read more.

Conclusion

Cash flow also allows us to know if we are able to invest on our business. Managment of these factors will help us to be able to plan and predict future cost so that we can be able to manage our costs during the months that we are not selling much. For example * Seasonal Variation if we are able to manage on the month we dont have a lot of customers then we will be able to plan and predict future inflow and outflows, we can do that if we are not spending too much during the season we always not have enaugh customer for example in march and april. * Late credit payment if we are able to manage this problem then we will be able to invest our money on our business because of we manage late credit payment then we will know that we will receive regular payment every month * Capital expenditure if we are ablte to manage this by making sure that we invest in things that will bring us money. ?? ?? ?? ?? Omobolanle Salami 23.04.2009 Assignment No. 03 Down 2 U Phone Page 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance 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 GCSE Accounting & Finance essays

  1. Marked by a teacher

    Cash flow. A cash flow forecast is a document that predicts cash requirements in ...

    4 star(s)

    The garden centre sells plants and seeds, with a caf� operating also, all of these will need renewing at some point so this will maximise profits.

  2. Marked by a teacher

    cash flow

    3 star(s)

    1.800 1.800 gas and electric 700 700 700 700 700 loan repayments 800 800 800 800 800 Currently rent 2.500 2.500 2.500 2.500 2.500 Insurance 300 300 300 300 300 Advertising 1.700 1.700 1.700 1.700 1.700 Total Expenditure 9.500 12.500 15.800 17.800 17.800 Net Cash Flow 9.500 2.500 200 2.200

  1. The business plan

    'How do we know that Have A Break will keep their prices low?' 'How do we know that we can trust your workforce? Arguments that might be put for the tuck shop are: 'The house need more places where students sell the food and which means there is more of

  2. Cash Flow for The Sea View Hotel. Evaluate how using cash flow forecasts and ...

    This can be used if a customer claims something later on that they didn't order or if they deny ordering something. * Delivery Note: The supplier sends the goods to the customer accompanied by a delivery note, which lists the items sent.

  1. Free essay

    planning personal finances

    amount deducted from it * company name * date tax code * employee name * net pay Example of a pay slip above An invoice is basically like a receipt. It's a bill written by a seller of goods or services and given to the purchaser.

  2. This report has been produced as evidence for Unit 9 - 'Financial Services' - ...

    (�2,725 / �12,000) * 100 = 22.71% total return If you take your income and distributions in cash, the calculation is similar. You simply add the amount of income and distributions you receive during the period to the change in account value. Then divide by the beginning balance and multiply by 100 as above.

  1. Management Accounting Report.

    General Overheads 90000 90000 105000 Contingency Fund 30000 30000 10000 Total Expenses 870000 910000 849000 Net Profit 40000 65800 126000 MONTHLY SALES BUDGET Current price �1,200 Increased price �1,320 Actual price �1,262 Month Unit � Unit � Units � January 90 �108,000 80 �105,600 100 �126,200 February 110 �132,000 90

  2. Costs, Profits and Break-even Analysis.

    They might consider introducing more team-based working methods. These could be developed via job rotation, enrichment and the empowerment already covered to try and boost performance of both the individual worker and the group/team to which they belong. Elsewhere jobs could be made less boring, which takes us back to Mayo / Maslow.

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