Secondary Secondary Business

Secondary Business- BTEC level 2 Unit 2

“Cash Flow” part 2

TABLE NEEDS TO BE INSERTED HERE

The second part of the specification asks the students to look at a cash flow and identify the benefits of using it.

1.) The first step is for students to identify the elements that need to go into the cash flow, putting them in the correct place.

2.) They need to then come up with suggest benefits of using the cash flow forecast.

3.) Finally they should suggest what the business may do based upon the results.

These are tackled in the attached spread sheet activity! This can be altered depending on the student’s interests. Students should complete all 5 questions.

The next step is for students to draw up their own cash flow forecast using the spread sheet as a template. This is partially set up on tab 2.

Cash flow forecasting – learners should: (Achieved)

● be able to identify inflows and outflows

● explain the purpose of a cash flow forecast, including that it identifies the flow of cash through a business over a period of time

● understand the sources of cash coming into the business (inflows)

● understand the sources and destination of cash leaving the business (outflows)

● identify the impact of timings of inflows and outflows

● understand the benefits of using a cash flow forecast to plan for success in a business

(e.g. to produce new goods/services, invest in new resources, expand/reduce activities) and explain the associated risks to businesses of not completing a cash flow forecast

● complete a cash flow forecast from given information, showing individual and total inflows, individual and total outflows, net inflows and outflows, and opening and closing balances


● analyse a business’ finances based on cash flow information and identify possible issues for the business from any cash surplus or deficit

For the attached spreadsheet activity click on the following link: http://www.collinseducation.com/Downloads/email/Kimberley/Article%202-%20BTEC%20Cash%20flow%20article%20part%202.xlsx

Andrew Dean

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