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

Cash-flow forecasting and working capital — practice question

(a)[8]

Explain two methods that could be used to overcome SSM’s cash-flow problems.

(b)[12]

Consider how the following changes in country Y may affect SSM. Which effect is likely to have the greatest impact on SSM’s profit? Justify your answer. • Increase in employment • Increase in inflation

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Gain easier access to short-term finance - a short-term bank loan / overdraft” …

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