Cash-Flow Forecast
Projection of future cash movements over period (monthly, quarterly).
Formula
Closing Balance = Opening Balance + Net Cash-Flow
Real World
A small independent retailer like a surf shop in Cornwall will forecast high inflows in July–August and near-zero inflows in January, helping it arrange an overdraft before the quiet season hits.
Exam Focus
When completing a forecast table, always calculate closing balance first — it becomes next month's opening balance.
How well did you know this?