Cash and Cash-Flow

What you need to know

Understand the critical importance of cash to a business for maintaining operations, such as paying suppliers, overheads, and employees.
Explain how maintaining a positive cash-flow prevents business failure and insolvency.
Differentiate clearly between the concepts of cash in the bank and business profit.
Calculate and interpret cash-flow forecasts by identifying cash inflows, cash outflows, net cash flow, and managing opening and closing balances.