Cash Flow Forecast

Quality Clean is forecast to have a cash-flow problem during the first three months of the office cleaning contract. Using Item B and your answer to question 2(a), explain two ways in which Joanne could try to solve this cash-flow problem. [8 marks]

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Using Item B, explain one way in which using a cash-flow forecast could help with the financial decision-making of Thornley ’s. (5 marks)

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Using Item B, explain the impact on Thornley ’s of leasing the new frying equipment. (6 marks)

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Using your answer abovr, explain the possible effects on Drivetime’s cash flow if Jayne decides to pay the car insurance in monthly instalments. (4 marks)

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Explain why preparing the cash-flow forecast in 2 (a) could be useful to Party time. (6 marks)

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