Cash-flow forecasting and working capital — practice question

Identify and explain two reasons why cash flow forecasting matters for Hilda. First reason: Why this matters: Second reason: Why this matters:

Consider how each of the changes below could affect DH. Which change is most likely to have the largest effect on the profit of DH? Justify your answer using reasons. Increase in the number of tourists from other countries: Government of country X reduces income tax: Fewer people demanding coach holidays: Conclusion: