Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
AHG is an established business because it has been trading for a long period. It offers garden goods, such as plants and flowers. AHG sets competitive pricing. The business employs 4 managers and 30 additional workers. Every one of AHG’s managers delegates. The Finance Manager is examining AHG’s statement of financial position because she wants to assess its liquidity. An extract appears in Table 1.1.
(a)[2]
Define what is meant by ‘current liabilities’.
(b)[2]
Identify two non-current asset examples.
(c)[4]
Outline two reasons why liquidity is important for AHG.
(d)[6]
Explain two advantages to AHG of its managers using delegation.
(e)[6]
Is competitive pricing the best method for an established business to use? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A business’s short-term debts, due for repayment in under one year” …