The following is an extract from a cash flow forecast - Edexcel - GCSE Business - Question 18 - 2018 - Paper 1
Question 18
The following is an extract from a cash flow forecast.
Fill in the three blanks to complete the cash flow forecast.
Cash inflow
Cash outflow
Net cash flow
Opening ... show full transcript
Worked Solution & Example Answer:The following is an extract from a cash flow forecast - Edexcel - GCSE Business - Question 18 - 2018 - Paper 1
Step 1
Cash inflow
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Answer
The cash inflow for February is given as 26. Thus, to compute the cash inflow for March, we start with the provided data. The cash inflow for January is 25.
Step 2
Cash outflow
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Answer
The total cash outflow for February is 83. The net cash flow is computed by subtracting the cash outflow from the cash inflow. For March, we identify the cash outflow needs to ensure a positive cash balance.
Step 3
Closing bank balance
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Answer
The closing bank balance for March must be calculated by adding the opening bank balance to the net cash flow for that month. Using the data provided, we can ascertain the values needed for all calculations.
