What you’ll learn6 learning objectivesChoose one objective for a focused lesson, or study the complete topic.3.7.1Profit and cash flow• Distinguish profit and cash flow• Profit records financial performance; cash flow tracks timing of cash inflows and outflowsSyllabus objective3.7.2Working capital• Analyse working capital• Working capital supports daily operations and short-term liquiditySyllabus objective3.7.3Liquidity position• Analyse liquidity position• Liquidity position reflects ability to pay short-term obligations when dueSyllabus objective3.7.4Cash flow forecasts• Prepare and interpret cash flow forecasts• Forecasts identify expected cash shortages, surpluses, opening balances, and closing balancesSyllabus objective3.7.5Investment, profit, and cash flow• Analyse the relationship between investment, profit, and cash flow• Investment can reduce short-term cash while supporting long-term profit potentialSyllabus objective3.7.6Cash flow problem strategies• Evaluate strategies for dealing with cash flow problems• Strategies include reducing costs, improving receivables, delaying payables, arranging overdrafts, selling assets, and revising stock levelsSyllabus objective
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