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3.7 CASH FLOW (CAUSES OF CASH FLOW PROBLEMS (Poor credit control, Allowing…

- - - - The longer this cycle takes to complete, the more working capital a business will need
- - - - easy to forecast as this will be fixed and agreed for a certain time period
    - - easy to forecast as this will be in the estate agent's details of the property
    - - difficult to forecast as these will vary with so many factors such as the no. of customers, seasonal weather cond. and energy prices
  - - - Cash payments (made by the business), wages, materials, rent and other costs
    - - The net cash flow for the period, cash balances at the start and end of the period
    - - Cash payments (to the business), cash sales, payments for credit sales, capital inflows
  - - - difficult to forecast as they depend on sales, so a sales forecast will be necessary - but how accurate might this be?
    - - easy to forecast if they have been agreed with the bank in advance
    - - easy to forecast as this is under Keon's direct control