Revision Questions: Explain the use/purpose of a cash flow forecast for a business Name 5 inflows and outflows for a business Be able to complete a cash flow forecast Be able to read a cash flow forecast and comment on why the business may have a positive or negative cash flow balance Be able to suggest how a business can improve its inflows and reduces its outflows for the long and short term Previous Exam Questions Range is a national chain of discount stores in the which has expanded rapidly. It sells a variety of products from furniture to stationery. From October of each year a quarter of each store’s floor space is used to stock Christmas products such as Christmas trees, lights and decorations. To do this The Range de-stocks its summer products, such as garden furniture and barbecues. This involves selling off its summer products at lower prices. (a) Which of the following is a cash inflow? (1 mark) Select one answer. A Payments to suppliers. B Purchasing assets. C Longer credit terms for customers. D Taking out a bank loan. (b) Identify reasons why might want to establish more two The Range favourable credit terms with suppliers. (2 marks)
Revision Questions: Explain the use/purpose of a cash flow forecast for a business Name 5 inflows and outflows for a business Be able to complete a cash flow forecast Be able to read a cash flow forecast and comment on why the business may have a positive or negative cash flow balance Be able to suggest how a business can improve its inflows and reduces its outflows for the long and short term Previous Exam Questions Range is a national chain of discount stores in the which has expanded rapidly. It sells a variety of products from furniture to stationery. From October of each year a quarter of each store’s floor space is used to stock Christmas products such as Christmas trees, lights and decorations. To do this The Range de-stocks its summer products, such as garden furniture and barbecues. This involves selling off its summer products at lower prices. (a) Which of the following is a cash inflow? (1 mark) Select one answer. A Payments to suppliers. B Purchasing assets. C Longer credit terms for customers. D Taking out a bank loan. (b) Identify two reasons why The Range might want to establish more favourable credit terms with suppliers. (2 marks)
Unit_3.3_Revision_Guide.docx