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CAIE IGCSE Business Studies 5.2.1 The Importance of Cash and Cash Flow Forecasts Questions

Practise cash-flow questions by completing figures, interpreting balances and judging whether a proposed improvement is suitable.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Calculate inflows, outflows, net cash flow, opening balance or closing balance.
  • Explain why a cash shortage can stop a business paying suppliers or employees.
  • Justify whether faster customer payment or delayed supplier payment is the best solution.

CAIE IGCSE Business Studies 5.2.1 The Importance of Cash and Cash Flow Forecasts Questions question 1

[Maximum number: 6]

LFK is a coal-mining business. It has 135 employees who are all provided with training. After the dismissal of one of LFK's employees there is a job vacancy for a new supervisor. External recruitment will be used. The Managing Director is preparing a cash flow forecast for LFK. An extract is shown in Table 3.1.

Table 3.1

Table 3.1

Question (a)

(a)

Calculate the value of X and Y.

X:

Y:

[ 2 ]

Question (b)

(b)

Identify four reasons why a cash flow forecast might be useful to a business.

Reason 1:

Reason 2:
Reason 3:
Reason 4:

[ 4 ]
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