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    Cima Edition 15 Worksheet CASH FLOW

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    anandita
    The document provides a cash flow worksheet and forecast for a business called Timmy's Security to help identify periods of negative cash flow. It shows receipts, payments, net cash flow, opening and closing balances on a monthly basis to help Timmy plan for cash shortfalls and surpluses. The document also includes true/false questions about cash flow concepts to test understanding.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cima Edition 15 Worksheet CASH FLOW

    Uploaded by

    anandita
    75 views3 pages
    The document provides a cash flow worksheet and forecast for a business called Timmy's Security to help identify periods of negative cash flow. It shows receipts, payments, net cash flow, opening and closing balances on a monthly basis to help Timmy plan for cash shortfalls and surpluses. The document also includes true/false questions about cash flow concepts to test understanding.

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    The document provides a cash flow worksheet and forecast for a business called Timmy's Security to help identify periods of negative cash flow. It shows receipts, payments, net cash flow, opening and closing balances on a monthly basis to help Timmy plan for cash shortfalls and surpluses. The document also includes true/false questions about cash flow concepts to test understanding.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views3 pages

    Cima Edition 15 Worksheet CASH FLOW

    Uploaded by

    anandita
    The document provides a cash flow worksheet and forecast for a business called Timmy's Security to help identify periods of negative cash flow. It shows receipts, payments, net cash flow, opening and closing balances on a monthly basis to help Timmy plan for cash shortfalls and surpluses. The document also includes true/false questions about cash flow concepts to test understanding.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Cash flow teacher guide (CIMA)

    GCSE activity – dummy’s guide to cash flow forecasts


    Independent Team Effective Self Reflective Creative
    enquirers workers participants managers learners thinkers

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    ‘A’-Level activity – cash flow advice card


    Independent Team Effective Self Reflective Creative
    enquirers workers participants managers learners thinkers

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    Cash flow worksheet

    1. It is important for Timmy to draw up a cash flow forecast to aid his decision
    making regarding the financial situation of the business. He can identify cash
    shortfalls and ensure that overdraft facilities are in place. He can identify when
    there are likely to be cash surpluses which may be used to buy additional
    equipment for example. He is hoping to get a loan from the bank for the security
    equipment. They may wish to see his cash flow forecast before agreeing to the
    loan.

    2. Timmy has forecast a negative closing balance in January and October. The main
    cause of this problem is the fact that he is paying for his bills every three months.

    3. Timmy could arrange to spread the outflows of cash for the bills by paying on a
    monthly basis instead of quarterly. He could also look at other ways of increasing
    cash inflows or decreasing cash outflows.
    Cash flow worksheet

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
    Receipts
    £ £ £ £ £ £ £ £ £ £ £ £
    Sales 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 23,000 25,000 30,000 30,000
    Interest on £ £ £ £ £ £ £ £ £ £ £ £
    investments 500 500 500 500 500 500 500 500 500 500 500 500
    £
    Loan 50,000
    £ £ £ £ £ £ £ £ £ £ £ £
    Total receipts 23,500 23,500 23,500 23,500 73,500 23,500 23,500 23,500 23,500 25,500 30,500 30,500
    Payments
    £ £ £ £ £ £ £ £ £ £ £ £
    Rent 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 5,800 6,000
    £ £ £ £
    Bills 5,000 5,000 5,000 5,000
    £ £ £ £ £ £ £ £ £ £ £ £
    Salaries 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 12,000 12,000 12,000
    £
    Equipment 50,000
    £ £ £ £ £ £ £ £ £ £ £ £
    Stock 5,100 5,100 5,100 5,100 5,100 5,100 5,100 5,100 8,000 10,000 10,000 7,000
    £ £ £ £ £ £ £ £ £ £ £ £
    Total payments 25,900 20,900 20,900 25,900 70,900 20,900 25,900 20,900 23,800 32,800 27,800 25,000
    -£ £ £ -£ £ £ -£ £ -£ -£ £ £
    Net cash flow 2,400 2,600 2,600 2,400 2,600 2,600 2,400 2,600 300 7,300 2,700 5,500
    £ -£ £ £ £ £ £ £ £ £ -£ £
    Opening balance 100 2,300 300 2,900 500 3,100 5,700 3,300 5,900 5,600 1,700 1,000
    -£ £ £ £ £ £ £ £ £ -£ £ £
    Closing balance 2,300 300 2,900 500 3,100 5,700 3,300 5,900 5,600 1,700 1,000 6,500
    True/False cash flow activity
    1. Cash is not as important as profit - FALSE

    2. Net cash flow equals receipts minus payments - TRUE

    3. To improve cash flow, businesses should aim to reduce cash inflows - FALSE

    4. Cash flow is the movement of cash into and out of a business - TRUE

    5. The closing balance can be calculated by combining the net cash flow with the
    opening balance - TRUE

    6. During a recession it is usually easy to borrow money - FALSE

    7. To improve cash flow businesses could negotiate longer payment terms with their
    suppliers - TRUE

    8. Receipts are inflows of cash from things like sales of goods and interest on
    investments - TRUE

    9. Poor cash flow is rarely a reason why businesses fail - FALSE

    10. Management accountants can help firms to manage their cash flow - TRUE

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