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Edexcel IGCSE Business Studies 3.2.2 Calculating & interpreting cash-flow forecasts

Practise calculating cash inflows, outflows, net cash flow and balances, then interpret what a forecast means for decisions.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • calculate net cash flow, cash outflow or closing balance from a forecast table
  • define or identify inflows, outflows, opening balance, closing balance and net cash flow
  • evaluate how forecast figures can support borrowing, planning or corrective action

3.2.2 Calculating and interpreting cash-flow forecasts question 1

[Maximum number: 2]

In 1985 Emirates started its airline business with just two aircraft. It is now a well-known airline with over 265 aircraft flying to over 180 destinations around the world.

Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

Figure 3 shows part of a cash flow forecast for Emirates.

Figure 3

Figure 3

Calculate the net cash flow for June 2017. You are advised to show your working.

billions AED

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