The following is an extract from a cash flow forecast
|
April |
May |
June |
|
000s |
000s |
000s |
Cash inflow |
23 |
24 |
30 |
Cash outflow |
|
28 |
81 |
Net cash flow |
10 |
|
(51) |
Opening bank balance |
30 |
40 |
36 |
Closing bank balance |
40 |
36 |
|
Fill in the three blanks to complete the cash flow forecast. (3)
Step 1 - Calculate the cash outflow for April
Net cash flow = inflow - outflow
10,000 = 23,000 - ?
Cash outflow = £13,000 (1 mark)
Step 2 - Calculate the net cash flow for May
Net cash flow = inflow - outflow
Net cash flow = £24,000 - £28,000
Net cash flow = - £4,000 (1 mark)
Step 3 - Calculate the closing balance for June
Closing balance = opening balance + net cash flow
Closing balance = £36,000 + - £51,000
Closing balance = - £15,000 (1 mark)