Report detailing an analysis of Gary Tredwells Cash Flow

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Report detailing an analysis of Gary Tredwell’s Cash Flow

In this report, I will be breaking down your cash flow forecast in detail and will be making suggestions and pointing out problems and telling you how I would change them. 

A cash flow forecast is a statement that shows the expected movements of the cash in and out of a business. It is normally prepared on a 12 month basis but predictions will more than likely be done on a monthly basis.

Cash Inflows:

Cash out flows:

This shows cash inflows from January to December compared with the outflows from January to December I will be using these figures to make recommendation for the issues that I have found.

Cash inflows:

Sales: Issue:

At the start it looks like you have good sales. However you outflow started to become higher than your sales you can see this in six of the months on the statement. Your sales gradually increase towards august and is positive but not by a lot, only by £115, unfortunately you are still left with a negative closing balance.

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Credit Sales: Issue:

Credit sales this is when a product is sold to a customer on credit, which means they receive the product before they have paid for it, normally the customer will start to pay it off a month after purchase. This method is used to gain more sales. In your business case selling on credit has gained your more sales as credit sales have increased each month the highest point increased to 1500.

Credit sales are a bit of a gamble as you can never predict a late or missed payment. However ...

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