Cash flow

Define Cash flow. Understanding ...

What is a cash flow forecast?

• A prediction of the enterprise cash flow over a period of time

• A document based on facts

• An actual record of the enterprise cash flow over a period of time

What is a cash flow statement?

• A prediction of the enterprise cash flow over a period of time

• A document based on guesses

• An actual record of the enterprise cash flow over a period of time

How do you work out the ¨Net cash Flow¨?

• Total outflow - Total inflow

• Total inflow - Total outflow

• Total inflow + Total outflow

• Total inflow x Total outflow

What is the relationship between a months ¨Closing balance¨ and the following months ¨Opening Balance¨?

• They stay the same throughout the time period

• The closing balance of a month is different to the opening balance of the next month

• The closing balance of the month is the same as the opening balance for the next month (closing balance for Jan is the opening balance for Feb)

How do you work out the enterprises ¨Total Inflow¨?

• Take away all the forms of income from each other

• Multiply all the forms of income together

• Add up all the forms of expenses together

• Add up all the forms of income together

How do you work out the enterprises ¨Total Outflow¨?

• Take away all the forms of expenses from each other

• Multiply all the forms of expenses together

• Add up all the forms of expenses together

• Add up all the forms of income together

How do you work out a months closing balance?

• Multiply together the NCF and OB together

• subtract the NCF from the OB

• Add together the NCF and OB together

• Add the total inflow and outflow together

Spirit started the month with an opening balance of 2,500. There total inflow was 5,000 and there total outflow was 3500. A) What was their NCF? B) What was their CB?

• 1500

• 2000

• 4000

• 6000

What did the business finish this cash flow statement with?

• A profit of ...

• A loss of ...

• 25,000

• -25,000