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Business Studies IGCSEPDF 155
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5.2 Cash-flow forecasting and working capital
5.2.1 The importance of cash and of cash-flow
forecasting:
5.2.2 Working capital:
5.3 Income statements
5.3.1 What profit is and why it is important:
Why cash is important to a business
What a cash-flow forecast is, how a simple one
is constructed and the importance of it
Amend or complete a simple cash-flow forecast
How to interpret a simple cash-flow forecast
How a short-term cash-flow problem might
be overcome, e.g. overdraft, delaying supplier
payments, asking debtors to pay more quickly
The concept and importance of working capital
How a profit is made
Importance of profit to private sector
businesses, e.g. reward for risk-taking/
enterprise, source of finance
Difference between profit and cash