Business 7115 · O Level · Cash-flow forecasting and working capital

Cash-flow forecasting and working capital — practice question

(a)[8]

Identify and explain two reasons why cash flow forecasting is significant for Hilda.

(b)[12]

Assess how each of the changes below might affect DH. Which change is likely to have the greatest effect on DH’s profit? Support your answer. A rise in the number of tourists from other countries. The government of country X cuts income tax. Fewer people demanding coach holidays. Conclusion.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: So the business knows how much cash is coming in and going out

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