Contents
Unit 3: Personal and Business Finance
Module objectives
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Objectives
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Cash flow forecasts
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Cash flow forecasts
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Preparing cash flow forecasts
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Using cash flow forecasting
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Benefits and limitations of cash flow forecasting.
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Case Study: External impacts on cash flow
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Break-even
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Break-even analysis
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Break-even forecast: Costs
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Revenue
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Calculating the break-even point
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Calculating a break-even point – using the contribution method
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Calculating the break-even point – using a break-even chart
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Identifying the area of profit, loss and the margin of safety
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Using a break-even chart
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Case study: Break-even
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Module 5: Cash flow forecasting and break even

Cash flow forecasts

 

It is very important for businesses to know how much money is flowing in and out. Cash flow forecasting attempts to do just that.

Watch the following video to get a brief overview:




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