STARTER TASK – You have 5 minutes to: Door Board TEACHERS DESK Balween Asil Rabbab Nice Anthony Yassir Shuyeb Brijesh Aditya Nasir Jahangir Ria Simran Joe Charlotte Trish Samuel Imran Shamar Maruf Lidia Weds 6th – 2 mins sit down Yugesh Mulki Edmond Jack Mason Rahat Harry STARTER TASK – You have 5 minutes to: 1 – Get your homework out 2 - Write and underline the date and title – “Cash flow continued” 3 – Glue in the Cash Flow help sheet Wednesday, 14 November 2018Wednesday, 14 November 2018

Edexcel GCSE Business Studies 1.3.4 Forecasting cash flow Edexcel GCSE Business Studies

Forecasting cash flows What is cash flow? Cash flow is the flow of all money into and out of the business. When it sells its products, money flows in: INFLOWS aka RECEIPTS When it buys materials or pays wages, money flows out: OUTFLOWS aka PAYMENTS 5 mins AO1 Understand the role and importance of cash flow to a business. (AO1) Understand the difference between a cash flow forecast (an estimate) and a cash flow statement (what has actually happened). (AO1) Explain how cash flow problems arise, how they can be minimised and how they can affect a business. (AO1)

Forecasting cash flows What is cash flow? Net cash flow is the difference between cash inflow and OUTFLOW over a period of time (e.g. week, month, quarter, year). Quick Challenge: If there’s not enough money flowing in, you don’t have enough to pay your bills... then what? 5 mins AO1 Understand the role and importance of cash flow to a business. (AO1) Understand the difference between a cash flow forecast (an estimate) and a cash flow statement (what has actually happened). (AO1) Explain how cash flow problems arise, how they can be minimised and how they can affect a business. (AO1)

Need Help? Check your key words list Forecasting cash flows What is Holly’s net cash flow? What is net cash flow? Need Help? Check your key words list 5 mins ????? AO1 Understand the role and importance of cash flow to a business. (AO1) Understand the difference between a cash flow forecast (an estimate) and a cash flow statement (what has actually happened). (AO1) Explain how cash flow problems arise, how they can be minimised and how they can affect a business. (AO1)

Forecasting cash flows What is Holly’s net cash flow? AO1 Understand the role and importance of cash flow to a business. (AO1) Understand the difference between a cash flow forecast (an estimate) and a cash flow statement (what has actually happened). (AO1) Explain how cash flow problems arise, how they can be minimised and how they can affect a business. (AO1)

Forecasting cash flows Poor cash flow = big problems! Poor cash flow = not enough cash to meet day-to-day expenses – there is a lack of working capital. 2 mins AO1 Understand the role and importance of cash flow to a business. (AO1) Understand the difference between a cash flow forecast (an estimate) and a cash flow statement (what has actually happened). (AO1) Explain how cash flow problems arise, how they can be minimised and how they can affect a business. (AO1)

Forecasting cash flows Cash flow problems activities 20 mins AO2 Apply your skills by estimating cash flows. (AO2) Apply skills, knowledge and understanding Grade A-B effectively/accurately | C-D satisfactorily/most | E-F some/limited AO3 Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. (AO3) Analyse/evaluate evidence, make/present reasoned judgements Grade A-B effectively/accurately | C-D satisfactorily/some | E-F simple/some