Cash-Flow Forecast: Variables
Key factors changing cash-flow: sales volume, payment terms, seasonal variation, supplier payments, capital spending, lo...
Real World
Cadbury experiences a surge in cash outflows each autumn as it pays suppliers for ingredients ahead of the Christmas confectionery rush, illustrating how seasonal variation strains short-term liquidity.
Exam Focus
For 'assess' or 'evaluate' questions, link specific variables (e.g. extended payment terms) to their direct impact on closing cash balance for top-band marks.
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