Business 0450 · IGCSE · Cash-flow forecasting and working capital
Cash-flow forecasting and working capital — practice question
TDG is a bicycle retailer with 3 employees. Because it sells in a mass market, it needs to keep customers loyal. Simon, the manager, understands that cash-flow management matters, so he is examining TDG’s cash-flow forecast. An extract is given in Table 1.1. Simon is thinking about how TDG can deal with its short-term cash-flow difficulty in September.
(a)[2]
Define “mass market”.
(b)[2]
Calculate X and Y.
X:
Y:
(c)[4]
Outline two reasons why cash-flow management could be important for TDG.
(d)[6]
Explain two ways TDG might solve its short-term cash-flow problem in September.
(e)[6]
Explain two methods a retailer could use to keep customer loyalty. Which method would be best to use? Justify your choice.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A product having a very large number of sales” …