Cash flow is of vital importance to the healthof a business. One saying is: ‘revenue is vanity, cash flow issanity, but cash is king’. What this means is that whilst it maylook better to have large inflows of revenue from sales, the mostimportant focus for a business is cash flow.

Required:

1. Describe what is meant by ‘cash flowbudget’. (130 words)

2. Explain how a cash flow forecast can help abusiness now and in the future. Give examples. (100 words)

3. Analyze why cash is considered to be moreimportant to a business than revenue or profit. (250 words)

4. Evaluate the importance of cash flow to abusiness of your choice. Explain how a recession would most likelyaffect this business. (170 words)

Answer rating: 100% (QA)

1 Cash flow budget basically helps an organization to get all the cash receipts and all cash expendi... View the full answer