1. 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

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

3. 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.

4. 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

5. 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

6. 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)

7. 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)

8. 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)

9. 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)

10. 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)

11. 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)

12. 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)

13. 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)

14. 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

15. 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

16. 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)