Cashflow Forecast Analysis

I just wanted to know what I should include in a cashflow forecast analysis. What should my points be about? What should I talk about? I'm doing the BTEC L2 First Award in Business, if that helps.
The question is
Analyse the completed Cashflow Forecast and explain when and why the company might need additional financial support over the coming months. (4 marks)
I'm not looking for answers but guidance on what I should look for and talk about.

Thank you,
Minister of Inquisitiveness

Reply 1

pmc:producer

20

Original post by deltagolf

I just wanted to know what I should include in a cashflow forecast analysis. What should my points be about? What should I talk about? I'm doing the BTEC L2 First Award in Business, if that helps.
The question is
Analyse the completed Cashflow Forecast and explain when and why the company might need additional financial support over the coming months. (4 marks)
I'm not looking for answers but guidance on what I should look for and talk about.

Thank you,
Minister of Inquisitiveness

We need more context here - can you share the forecast and business circumstances?

Reply 2

pliticshub

10

Original post by deltagolf

I just wanted to know what I should include in a cashflow forecast analysis. What should my points be about? What should I talk about? I'm doing the BTEC L2 First Award in Business, if that helps.
The question is
Analyse the completed Cashflow Forecast and explain when and why the company might need additional financial support over the coming months. (4 marks)
I'm not looking for answers but guidance on what I should look for and talk about.

Thank you,
Minister of Inquisitiveness

If the business has high gearing, they should look at the taxation rates for additional financial support if they increase - you can see this from the cash flow if the finance expenses is high on non current liabilities in mortgages, loans

If they need additional financial support in current liabilities such as short term debt, owing their creditors and suppliers money

If the firm is in a competitive market where updating technology is vital, they should have additional financial support for more updated capital in technology or innovation of new goods. You could also bring in market research etc

Cashflow Forecast Analysis

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