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Business Studies IGCSEPDF 164
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(e) Do you think a bank loan is the best source of start-up capital for a new business? Justify your
TUN vd
Jonathon is a sole trader. He owns a shop selling office equipment including printers. To encourage
sales Jonathon allows customers 4 weeks to pay for the office equipment. Jonathon thinks his
business is likely to remain small. He knows managing cash flow is important for his business and
he has prepared a cash flow forecast. An extract is shown in Table 2.1.
Table 2.1
Extract from Jonathon’'s cash flow forecast July - September 2025 ($000)
July August September
Cash inflow 60 80 ¥
Cash outflow 90 95 70
Net cash flow (30) xX 20
Opening balance 20 (10) (25)
Closing balance (10) (25) (5)