Explain the critical importance of cash to the survival and day-to-day operation of businesses.
Understand the fundamental difference between cash flow and business profit.
Analyze the severe consequences of experiencing cash flow problems versus the operational effects of maintaining a positive cash flow.
Explain how and why cash flow forecasts are constructed by businesses.
Complete and interpret sections of a cash flow forecast, demonstrating an understanding of cash inflows, cash outflows, net cash flow, opening balances, and closing balances, without the need to construct the entire forecast from scratch.
Evaluate possible solutions to rectify cash flow problems, including rescheduling payments, utilizing overdrafts, reducing cash outflows, increasing cash inflows, and securing new sources of finance.
