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Assignment 3

Task 2

When your cash budget is complete, look carefully at the figures it shows for inflows and outflows of cash. If the cash flow forecast suggests that Whitehouse Crafts might require an overdraft at any time, what alternative actions could the management of Whitehouse Crafts take that would avoid this situation? How does this illustrate the value of cash flow forecasting?

Task 3

Attach a report to your cash flow forecast that analyses what might happen for Whitehouse Crafts if the sales price per unit increases by 20%, but sales fall by 10%. What might be the effect on the business of the change in price that is expected in April?











Finance links:

http://www.bbc.co.uk/schools/gcsebitesize/business/finance/cashflowrev3.shtml



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timwoods
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Word Document Mr Woods' World Famous Cashflow Circuit.doc (Word Document - 182k)
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