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BUSINESS STUDIES QUICKIE

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holtadit:
A cash flow forecast is used by the company to help it with its financial control. Explain
why Python Bicycles would find a cash flow forecast useful.


So this question comes up regularly in one form or another.

So what are the points ? Give me at least 4 brief ones. I can develop them myself.

Thanks People !

Saladin:
Cash flow forecast can be used to predict the needs of businesses needs for additional short term finance. Such as bank overdraft.

Cashflow forecast can also be used to request banks for money.

holtadit:

--- Quote from: The Mysterious Dude on May 06, 2010, 06:15:23 pm ---Cash flow forecast can be used to predict the needs of businesses needs for additional short term finance. Such as bank overdraft.

Cashflow forecast can also be used to request banks for money.

--- End quote ---

Besides those, what else. I mean imagine a 6 mark question; what would you write (just the bare outline will do).

Thanks man for helping +rep

Saladin:
Yes, when u hav few points, you have to rely on the elaboration to get u the marks.

sany94:
1. It will help the business in keeping the bank manager informed.
2. It will help the business in managing cash flow.
3. It will help in arranging with the bank, to borrow money over the time when you have negative cash flow.
4. It will also help them to make necessary arrangements to escape from negative cash flow.
5. With the help of cash flow forecast the business can make plannings for financial requirements.

These r the only points which r popping up in my head rite now.......n if u need help with any other ans lemme noe.....

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