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Cash Flow PPT including construction of CFF - St Ivo School

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Cash Flow PPT including construction of CFF - St Ivo School Powered By Docstoc
					Cash flow: The life blood of any
           business

Aim: To understand what cash
           flow is.
 CASH FLOW HAS NOTHING TO DO
      WITH PROFIT OR LOSS.

A PROFITABLE BUSINESS CAN CLOSE
     DOWN DUE TO CASH FLOW
          DIFFICULTIES.
               Cash flow
    The amount of money flowing into
    and out of the business

 Cash   inflow is ………………………………….

 Cash   outflow is ………………………………..

 Net   cash flow is ……………………………….
Working capital ……………………………………



Liquidity………………………………………………



Dominoes!!!!!!!! Create the correct
 sequence and write the chain in your
 books.
      Cash flow forecasting
  To identify potential cash flow
  problems in advance.
 To help the business take the
  correct steps to resolve cash flow
  problems.
 To make sure cash is available to pay
  bills.
 To help obtain financial help from the
  bank
 Tostop the business being forced
 into liquidation.
 To identify if the business has too
 much cash.
              Inflows
Name 3 cash inflows
             Outflows
Name 3 cash outflows
           Cash flow forecast
           Jan     Feb   Mar    Apr

Opening      A       E
balance

Total        B
inflows

Total        C
outflows

Net cash   B–C=D
flow

Closing    A+D=E
balance

				
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posted:10/1/2012
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