The Internet belongs to everyone. Let’s keep it that way.

Protect Net Neutrality
Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Regular and Irregular Cashflow

No description
by

Mr Russell

on 3 February 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Regular and Irregular Cashflow

Regular and Irregular
Cash Flow Excel Formula WALT- prepare an annual cash flow forecast using ICT


WILF – 2 completed cash flow forecasts using formulas Learning Objectives Mr Russell

Aim: Pass and Merit

Finish:

Comment Distinction – Evaluate how cash flows and financial recording systems can contribute to managing business finances (D1). Merit – Analyse the implications of regular and irregular cash inflows and outflows for a business organisation (M3). Pass – Present the cash flow on a spreadsheet using formulae(P6). Progress Check Credit control - includes all the possible steps a business can take to identify customers who are slow to pay and the actions it can then take.
Credit Checks on new customers
Computer systems which highlight overdue payments
Chase up late payers
Refuse to supply customers until payments have been made
Credit insurance
Discounts for early payments Credit Control Business may be viewed as risky by investors Time maybe wasted on debt collection Maybe a need for credit control activities Financial planning is more difficult Suppliers may not be paid on time Cash-flow forecast will be more inaccurate Implications of Irregular Cash-flow Some businesses are notorious for having irregular income What are the implications of irregular cash flow?

Make a list with a partner.



5 Minutes Task Implications of Irregular Cash Inflow Business will be viewed as successful by investors Time is not wasted chasing debtors Maybe less need for credit control activities Financial planning is easier Suppliers are more likely to be paid on time Cash-flow forecast will be more accurate Implications of Regular Cash-flow Businesses prefer regular income payments since this allows cash flow to be managed more easily. Implications of Regular Cash Inflow The timing of any payment made by a business is within its control because it can delay payments if it wants.

However, employees and suppliers will be upset if they are not paid on time!
Most businesses like to control the timing of payments as much as possible with the aim of:

Hanging on to their money as long as possible
Making sure they have enough money in the bank to make payments and avoid using their overdraft Timing of Outflows When a business produces a cash-flow
forecast they have to allow for the
fact that some amounts of money are received at regular intervals, while others appear at irregular intervals.

Businesses prefer regular income payments! Regular and Irregular Inflows WALT- Understand the difference between, and the implications of, regular and irregular inflows and outflows.


WILF – You to show me that you know what regular and irregular inflows and outflows are and how they impact on a business. Learning Objectives “What are the implications?” Regular & Irregular Cash-flows Mix and Match
Sort the cards in to pairs.

There are some blank ones!! Starter Distinction – Evaluate how cash flows and financial recording systems can contribute to managing business finances (D1). Merit – Analyse the implications of regular and irregular cash inflows and outflows for a business organisation (M3). Pass – Prepare a hand written cash flow forecast (P6). Progress Check What are the implications of regular cash flow?
Make a list with a partner.
5 Minutes Task Distinction – Evaluate how cash flows and financial recording systems can contribute to managing business finances (D1). Merit – Analyse the implications of regular and irregular cash inflows and outflows for a business organisation (M3). Pass – Prepare a hand written cash flow forecast (P6). Progress Check Distinction – Evaluate how cash flows and financial recording systems can contribute to managing business finances (D1). Merit – Analyse the implications of regular and irregular cash inflows and outflows for a business organisation (M3). Pass – Present the cash flow on a spreadsheet using
formulae(P6). Progress Check Mr Russell

Currently: Pass
Target: Merit

Comment: I have my hand drawn cash flow, I
just need to make it into a spreadsheet and use formula.

Progress: =

SUM

( )

Formatting Theme Park Example Capital $10

Sales $3 per month

Rent $2 per month

Wages $1 per month Theme Park Example Capital $10

Sales $3 per month

Rent $2 per month

Wages $1 per month

Ride repair $5

New Ride $10 Repayment $1 Per month Loan $10
Inflows and Outflows Example Capital

Sales

Rent

Wages

Capital Expenditure

Loans

Loan Repayments

Purchases

Inflows

Capital
Sales
Loans
Outflows

Rent
Wages
Capital
Expenditure
Loan Repayments
Purchases Regular Inflows

Sales

Are they always regular? Irregular Inflows

Capital

Loans
Rent

Wages

Loan Repayments

Purchases- Always? Regular Outflows

Capital Expenditure

Purchases

Irregular Outflows
Full transcript