Business 0450 · IGCSE · Cash-flow forecasting and working capital

Cash-flow forecasting and working capital — practice question

(a)[8]

Explain two reasons why working capital is significant to LB.

(b)[12]

Using Appendix 2 and other information, look at the three employees that LB could make redundant. Which employee should LB choose? Justify your answer. Naga; Reeta; Amy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: To meet everyday expenses / fixed costs / variable costs / overheads - if these costs cannot be paid then output cannot be produced - and no products could be made

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