3.7 Cash flow


1. Working Capital – Defines the term and looks at how the working capital cycle operates.

2. Managing Working Capital – Looks at how managers can manage the cycle to the benefit of their business.

Note – Cash & profit are very different from each other. Cash is actual money. Profit = Sales – Costs. A profitable business may become bankrupt if it does not have sufficient cash to meet its liabilities.

Cash flow forecasts

3. Cash flow forecasts – Outlines the key features and why they are produced.

4. Managing cash flow – Looks at what managers can do when the business experiences cash flow problems.