Page 413 - F1 Integrated Workbook STUDENT 2018
P. 413
Working capital management – receivables, payables, inventory
and cash
4.3 Receipts and payment forecast
This is a forecast of cash receipts and payments based on predictions of sales and
cost of sales and the timings of the cash flows relating to these items.
4.4 Preparing a cash budget from a statement of financial position
This is a forecast derived from predictions of future statement of financial positions
are made of all items except cash, which is then derived as a balancing figure.
It is important to note you will not have to prepare a full cash flow forecast in
your examination but may be asked to prepare any part of it.
403
