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3 Cards in this Set
- Front
- Back
Increasing the cash inflow |
Businesses could sell stock to avoid holding too much. This reduces the risk of spending more money on holding stock, however businesses may then have a lack of stock and end up dissatisfying customer needs. Also, they could use external finance to obtain more cash inflow, however, it could affect their cash outflow due to the money they will have to pay back. Lastly, Businesses could get customers to pay the quicker, therefore increasing the business cash inflow quickly as well. |
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Cash Flow Forecast |
A document which helps a business predict when cash is expected to come into and leave the business over a period of time. It helps a business identify their financial problems they have or could have in the future . It helps them know or find out how the financial problems have occurred through their cash flow. Also, helps them identify a solution for their cash flow. |
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Decreasing cash outflow |
Businesses could compromise with suppliers to pay them later when they have a higher cash inflow, however, if the business does not have money the next time their suppliers increase the price or refuse to supply the business with stock anymore. |