Cash Flow Statement Mr.Singh

Cash Flow Statements Cash flow: The movement of cash in and out of a business Businesses often prepare projected cash flow statements – an estimate of the amount of cash they will receive and spend in a given period of time

Preparing Cash Flow Statements 1. Title: Projected Cash Flow Statement Name of Business Date 2. 3 Columns: Transaction In (+) Out (-) 3. Record all projected transactions and total them at the end

Cash Flow Statement

Ways to increase cash flow Increase the price of goods Minimize Costs Spread out expenses Reduce Inventory Use the right kind of debt Collect what is owed to the business Shorten the deadline for accounts receivable Stretch the deadline for accounts payable

Cash Flow Strategies Business often make customers pay with cash, credit or debit card so they get the cash right away, and then take as long as possible to pay off their accounts payable to increase the cash they have on hand at any given time. They’ll invest the cash and make money of the interest.