Learning objective
Calculate cash flow forecast figures, including total costs, total revenue and net cash flow.
Read the explanation, check the common trap, then practise with flashcards and questions.
At a glance
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Flashcards
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Questions
Topic
Quantitative skills in business
Subtopic
Calculation requirements
Study support
Understand this objective
Quick explanation
Calculate cash flow forecast figures, including total costs, total revenue and net cash flow
- This point belongs to Quantitative skills in business, especially Calculation requirements.
- You need to be able to calculate cash flow forecast figures, including total costs, total revenue and net cash flow.
- The key ideas to know are costs, cash flow forecast, and revenue.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Calculation requirements to exam-style questions, flashcards, and revision notes for Quantitative skills in business.
Quick student answer
Calculate the net cash flow for a small manufacturer that expects total revenue of £120,000 and total costs of £85,000 for the next year.
Direct answer
£35,000
How it works
Net cash flow = Total revenue – Total costs. £120,000 – £85,000 = £35,000. This figure represents the cash the business will have after covering all expected costs.
Key terms
- Net cash flow: The amount of cash a business will have after all expected cash inflows and outflows have been accounted for, calculated as total revenue minus total costs.
Common trap
Confusing profit with cash flow: Profit is accounting income after expenses, while cash flow is the actual cash movement; they can differ due to timing and non‑cash items.
Related questions
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Flashcard prompts
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Revision notestopic notes
Open the full topic revision notes when you are ready to review this objective in context.
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