how to improve cash flow
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3.1_how_to_improve_cash_flow_v.3.pptx | |
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3.1_how_to_improve_cash_flow_starter_activity_v.2.docx | |
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Key term: CASH FLOW - the flow of cash into and out of a business
Key term: FINANCIAL MANAGEMENT - deliberately changing monetary variables like cash flows to achieve financial objectives such as improved cash flows
Key term: DE-STOCKING - reducing the levels of stocks in a business
Key term: TRADE CREDIT - where a supplier gives a customer a period of time to pay for a bill (or invoice) for goods or services once they have been delivered
methods_of_improving_cash_flow.docx | |
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3.1_how_to_improve_cash_flow_activity__1_.docx | |
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3.1_how_to_improve_cash_flow_activity__2_.docx | |
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HOW TO IMPROVE
CASH FLOW
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e-bay_designer.docx | |
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Starter Activity Please complete the cash flow worksheet. You can use the key terms below to help you.
CASH FLOW - the flow of cash into and out of a business
INFLOW - the cash flowing into a business, its receipts
OUTFLOW - the cash flowing out of a business, its payments
NET CASH FLOW - the total receipts of a business minus its total payments
OPENING BALANCE - the amount of money in a business at the start of a month (the closing balance from the previous month)
CLOSING BALANCE - the amount of money in a business at the end of a month (Opening balance + net cash flow)
INFLOW - the cash flowing into a business, its receipts
OUTFLOW - the cash flowing out of a business, its payments
NET CASH FLOW - the total receipts of a business minus its total payments
OPENING BALANCE - the amount of money in a business at the start of a month (the closing balance from the previous month)
CLOSING BALANCE - the amount of money in a business at the end of a month (Opening balance + net cash flow)
e-bay_designer_answers.docx | |
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3.1_how_to_improve_cash_flow_starter_activity_updated | |
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3.1_how_to_improve_cash_flow_starter_activity_updated_answers | |
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Key term: FINANCIAL MANAGEMENT - deliberately changing monetary variables like cash flows to achieve financial objectives such as improved cash flows
So, as we can see, a business can improve its cash flow using sound financial management. This can be done through improving its cash flow.
How could a business improve its cash flow? There are two ways.
How could a business improve its cash flow? There are two ways.
methods_of_improving_cash_flow.docx | |
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Activity: With your partner, spend 10-15 minutes discussing how each of the above could lead to improved cash flow.
S+C: Can you think of any disadvantages to using the above methods?
S+C: Can you think of any disadvantages to using the above methods?
Key term: TRADE CREDIT - where a supplier gives a customer a period of time to pay for a bill (or invoice) for goods or services once they have been delivered
How can trade credit be used to improve cash inflows or reduce cash outflows?
Key term: DE-STOCKING - reducing the levels of stocks in a business
Why would de-stocking lead to improved cash flow?
What are the disadvantages to both trade credit and de-stocking?
What are the disadvantages to both trade credit and de-stocking?
applying_improving_cash_flow_to_an_examples.docx | |
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Plenary:
1. What two ways can a business use to improve their cash flow?
2. How do you calculate net cash flow?
3. What is trade credit?
4. What is de-stocking?
5. How can a business increase its inflows?
6. How can a business decrease its outflows?
7. What are the disadvantages of making staff redundant?
8. What is the disadvantage of a bank loan?
9. Why is reducing trade credit to your customers a bad thing?
1. What two ways can a business use to improve their cash flow?
2. How do you calculate net cash flow?
3. What is trade credit?
4. What is de-stocking?
5. How can a business increase its inflows?
6. How can a business decrease its outflows?
7. What are the disadvantages of making staff redundant?
8. What is the disadvantage of a bank loan?
9. Why is reducing trade credit to your customers a bad thing?