1. C ASH FLOW FORECASTING

2. I NTENDED LEARNING OUTCOMES Learners will: Be able to provide a definition of the term ‘cash flow forecast’ Analyse the results of a simple cash flow forecast prepared for a bakery

3. L EARNER TASK : Write down your definition of the term ‘Cash flow forecast’

4. W HAT IS A FORECAST ? A prediction of what is going to happen in the future

5. W HAT IS A CASH FLOW FORECAST ? A prediction of how much money a business WILL have: Coming into its bank account; Going out off its bank account; and Left in its bank account at the end of each month for a given period of time

6. W HY IS IT IMPORTANT FOR A BUSINESS TO PREPARE A CASH FLOW FORECAST ? The business owners need to make sure that there is enough money in the business bank account to pay expenses or bills when they fall due

7. By preparing a Cash flow forecast a business owner will be able to identify if he or she will need to obtain additional finance in the future to help the business to survive

8. Are there any significant differences in the definition you noted and the definition just discussed? If so post your queries on ‘Todays meet’ and these queries will be addressed while you watch the rest of this webinar

9. C ASH FLOW FORECAST FOR M ARKS C AR MECHANICS S EPTEMBER 2015 TO N OVEMBER 2015 Money left in the bank account There will be a shortage of money in November !!!!!!!!! The closing balance of one month is the opening balance of the next month

10. L EARNER TASK Look at the Cash flow forecast prepared for Ben’s Bakery Answer the Cash flow forecast questions All of these questions are based on the figures contained in Ben’s Cash flow forecast Both the Cash flow and the questions have been uploaded on blackboard and emailed

11. SOLUTIONS TO QUESTIONS ON BEN’S BAKERY

12. I DEAS TO IMPROVE THE BUSINESS CASH FLOW FORECAST Increase sales Reduce expenses e.g. Shop around for cheaper suppliers Return to Todays meet to post any further questions that you have Well done everyone.