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Cash outflow - Coggle Diagram
Cash outflow
Payment to suppliers
Suppliers sell raw materials to the firm
Firm adds values to the raw materials
Supplier may provide woos and the business turns it into a furniture
Wages/salaries
Pay the staff
Paid monthly or weekly
Depends on when the business agreed to pay
Mortgage repayments/rent payments
Depends on whether the business owns or rents its premises
Normally have monthly costs to pay (for the property)
Divided in mortgage repayments or rent payments
Payment of overheads
Overheads → bills paid monthly/quarterly
Includes electricity and water
Loan repayments
Business may need to pay back a loan
Loan is paid with interests
Investments/growth
Business invest in premises/machinery
They plan their cash flow (ensure they have money)