Cash Budgets

Poor cash flow can be caused by:

• Suppliers not allowing credit

• An increase in expenses

• Low sales

• Owner investing money

Businesses can improve their cash flow by:

• Increase advertising

• Apply for a loan

• Lower sales

• Finding cheaper suppliers

Cash budgets allow businesses to:

• Monitor and Control

• Increase their sales

• Recruit the best employees

• Measure Performance

Identify what should be in (i)

• Closing Balance

• Opening Balance

• Profit for the Year

• Gross Profit

Identify what should be in (ii)

• £5,000

• £7,000

• £4,000

• £1,500

What should be in (iii)

• £1,500

• £4,500

• £4,700

• £6,400

What should be in (iv)

• £3,500

• £4,500

• £4,700

• £6,400

What should be in (v)

• £1,500

• £4,500

• £5,200

• £6,400