STARTER TASK – You have 5 minutes to: Door Board TEACHERS DESK Balween Asil Rabbab Nice Mulki Yassir Shuyeb Aditya Nasir Yugesh Jahangir Ria Simran Joe Charlotte Trish Brijesh Samuel Jack Mason Maruf Lidia Weds 6th – 2 mins sit down Anthony Edmond Imran Shamar Rahat Harry STARTER TASK – You have 5 minutes to: 1 – Write and underline the date and title – “Forecasting cash flows” 2 – Glue in the Learning Objectives and Key Terms Wednesday, 14 November 2018Wednesday, 14 November 2018

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

Business Homework This was due today. 1. Ensure all HW has your name on it 2. Complete Pupil Response on Autumn Test 2 3. Write at least 2 Targets on your target sticker Those who have not completed it will be in detention TODAY at 1525 in IT3.

Forecasting cash flows - Starter STARTER TASK – You have 5 minutes to: 1 – Write and underline the date and title – “Forecasting cash flows” 2 – Glue in the Learning Objectives and Key Terms 3 – Complete the formulas from last lesson (below) in your book __ = __ + __ Total costs = _____ Costs + ________ Costs TR = P x Q _____ _______ = _____ x ________ Profit/____ = Total _______ – Total ____ Profit/Loss = Total revenue – Total cost TR = P x Q Total revenue = Price x Quantity TC = FC + VC Total costs = Fixed Costs + Variable Costs

Forecasting cash flows Answers/Complete the formulas from last lesson TC = FC + VC Total costs = Fixed Costs + Variable Costs TR = P x Q Total revenue = Price x Quantity Profit/Loss = Total revenue – Total cost Profit/Loss = Total revenue – Total cost TR = P x Q Total revenue = Price x Quantity TC = FC + VC Total costs = Fixed Costs + Variable Costs

Forecasting cash flows / LO’s 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) Apply your skills by estimating cash flows. (AO2) Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. (AO3)

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)

What specific cash INFLOWS and OUTFLOWS can you come up with? Forecasting cash flows What is cash flow: 5 minute activity What specific cash INFLOWS and OUTFLOWS can you come up with? 5 mins Write a list in your exercise book 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: 5 minute activity INFLOWS OUTFLOWS Tick your answers if you got them right, add to your list the ones above 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

Write down all of the key terms you can remember from this lesson? Forecasting cash flows Plenary - Key term challenge... Write down all of the key terms you can remember from this lesson? 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) AO2 Apply your skills by estimating cash flows. (AO2) AO 3 Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. (AO3) 5 mins

Forecasting cash flows / LO’s 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) Apply your skills by estimating cash flows. (AO2) Analyse and evaluate a real-life business scenario, make reasoned judgements and present appropriate conclusions. (AO3)