GCSE Business Studies Friday Afternoon Resource Pack Missing

GCSE Business Studies Friday Afternoon Resource Pack Missing words: cash flow forecast

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (1) A forecast is an attempt to _______what might happen to a ____. A ________ predicts the money that will flow in and out of the business in the future. A profitable business can go _______ because it has run out of _____to pay bills. A cash flow forecast allows a business to _____ so that it will have enough cash in the business to pay bills. Money flowing into the business is called ____ while money flowing out of the business is called ____.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (2) Sales, owners’ investment and _____ are examples of receipts. Wages, _______ and fuel are examples of payments.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (3) Cash flow forecast for the first 6 months January to June Jan £’ 000 Feb Mar Apr £'000 £’ 000 May £’ 000 Jun £’ 000 Total receipts 100 80 120 160 150 Total payments 100 150 120 130 0 – 20 – 30 40 ? 30 30 ? – 20 – 50 – 10 ? 10 – 20 – 50 – 10 10 Net cash flow Opening balance Closing balance

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (4) Total receipts minus total payments equals _______ The forecast net cash flow for June is _______ The opening cash balance at the beginning of the month is the ________ of the previous month. The forecast opening cash balance for March is _______ Net cash flow added to the ________ equals the closing balance. The forecast closing cash balance for January is _______

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (5) A negative closing balance forecast is known as a _______. The business ____ have enough cash to pay the bills when they are due for payment. A positive closing balance is known as a _______. The business ____ have enough cash to pay the bills when they are due for payment. The business is forecast to have a deficit in March, April and ____. The business is forecast to have a surplus in January, ____ and June.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Fill in the gaps (6) The business may arrange an ____ or to pay an insurance bill monthly rather than in one ____ in order to deal with a forecast deficit cash balance. The business can arrange investment opportunities before a forecast surplus cash balance occurs, to ensure that cash which is not needed for its day to day running is being used to its advantage by earning ____.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Missing words bankrupt receipts payments raw materials predict business cash flow forecast bank loans cash closing balance will February opening balance interest will not lump sum £ 10, 000 plan ahead May £ 30, 000 deficit net cash flow surplus £ 20, 000 overdraft

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (1) A forecast is an attempt to predict what might happen to a business. A cash flow forecast predicts the money that will flow in and out of the business in the future. A profitable business can go bankrupt because it has run out of cash to pay bills. A cash flow forecast allows a business to plan so that it will have enough cash in the business to pay bills. Money flowing into the business is called receipts while money flowing out of the business is called payments.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (2) Sales, owners’ investment and bank loans are examples of receipts. Wages, raw materials and fuel are examples of payments.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (3) Cash flow forecast for the first 6 months January to June Jan Feb Mar Apr May Jun £’ 000 £'000 £’ 000 Total receipts 100 80 120 160 150 Total payments 100 150 120 130 0 �– 20 – 30 40 20 Opening balance 30 30 10 – 20 – 50 – 10 Closing balance 30 10 – 20 – 50 – 10 10 Net cash flow

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (4) Total receipts minus total payments equals net cash flow. The forecast net cash flow for June is £ 20, 000. The opening cash balance at the beginning of the month is the closing balance of the previous month. The forecast opening cash balance for March is £ 10, 000. Net cash flow added to the opening balance equals the closing balance. The forecast closing cash balance for January is £ 30, 000.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (5) A negative closing balance forecast is known as a deficit. The business will not have enough cash to pay the bills when they are due for payment. A positive closing balance is known as a surplus. The business will have enough cash to pay the bills when they are due for payment. The business is forecast to have a deficit in March, April and May. The business is forecast to have a surplus in January, February and June.

GCSE Business Studies: Friday Afternoon Resource Pack Missing words: cash flow forecast Answers (6) The business may arrange an overdraft or to pay an insurance bill monthly rather than in one lump sum in order to deal with a forecast deficit cash balance. The business can arrange investment opportunities before a forecast surplus cash balance occurs, to ensure that cash which is not needed for its day to day running is being used to its advantage by earning interest.