5.2 Cash Flow Forecast

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5.2 Cash Flow Forecast: Cambridge IGCSE Business 0264 lesson

5.2 Cash Flow Forecast is one of the 5 lessons in Unit 5 Financial Information and Decisions of Cambridge IGCSE Business 0264, for first examination in 2027. It is an editable PowerPoint of 18 slides written against syllabus section 5.2.1, with 1 embedded video case study, 1 learning check and an exit ticket. Also suitable for Cambridge IGCSE (9-1) Business 0774 and Cambridge O Level Business 7081, which share the same content.

What cash flow is and why it is not profit, the structure of a forecast, then the student task the syllabus asks for: amend a cash flow forecast for a printing business when the opening balance, a material cost and a wage figure change. A video on a cash flow problem at the University of Arizona shows a large organisation running short of cash. Interpreting forecasts and the four ways to overcome a short-term cash problem complete the lesson. Students are not asked to construct a forecast, in line with the syllabus note.

Slide from lesson 5.2 of Cambridge IGCSE Business 0264: Cash Flow Forecast

Learning objectives

Taken from the objectives slide of the lesson, which follows the syllabus wording.

5.2.1 The importance of cash and cash flow forecasts

  • why cash is important to a business
  • what a cash flow forecast is and why it is important
  • main features of a cash flow forecast: cash inflow, cash outflow, net cash flow, opening balance, closing balance
  • amend or complete a simple cash flow forecast
  • interpret a simple cash flow forecast
  • how a short-term cash flow problem may be overcome: overdraft, delaying supplier payments, asking customers to pay more quickly, delay purchase of non-current assets

Note: candidates will not be assessed on constructing a cash flow forecast.

What is in the lesson

The running order below is the deck as sold. Every lesson in the course follows the same shape: learning objectives, content slides with the real business examples, a learning check after each section, a case study with questions, key takeaways and an exit ticket. A teacher answer key (PDF), with model answers to every learning check, case question and exit ticket, is included when you buy the unit or the complete course.

Slide by slide (18 slides)
  1. Title slide
  2. Learning Objectives
  3. What is Cash Flow?
  4. Importance of Cash Flow Management
  5. What is a Cash Flow Forecast?
  6. Structure of a Cash Flow Forecast
  7. Completing a Cash Flow Forecast
  8. Student Task: Amend a Cash Flow Forecast
  9. Cash Flow Trouble at University of Arizona
  10. Cash Flow Problem (video)
  11. Benefits of Cash Flow Forecasting
  12. Interpreting Cash Flow Forecasts
  13. Amending Cash Flow Forecasts
  14. Learning Check – Cash Flow Forecasts
  15. Overcoming Cash Flow Problems
  16. Reducing Costs to Improve Cash Flow
  17. Recap from 5.1: Working Capital and Cash
  18. Exit Ticket

Where it fits

Week 30 of the 0264 scheme of work and pacing guide, which gives the course 46 weeks with a mock in week 41. Previous lesson: 5.1 Business Finance Needs and Sources. Next lesson: 5.3 Profit and Loss. All 28 lessons: Cambridge IGCSE Business 0264.

How to buy

The lesson on its own: 5.2 Cash Flow Forecast on TES. The unit: Unit 5 Financial Information and Decisions. The whole course in one download: 0264 Complete Bundle. Lesson 1.1 is free with its answer key if you want to see the format first.