1. 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

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

3. 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)

4. 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)

5. 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)

6. 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)

7. 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)

8. 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