unit 15 sleepy Hollow simulation

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kerryhill100
kerryhill100 Registered Posts: 121 Dedicated contributor 🦉
in AAT Level 3 (Level 6 in Scotland)
Hello,

I think I'm having a bit of a mental block!!

trying to complete task 2 of this simulation which asks me to write a memo to identify receipts and payments that require careful control and suggest what action should be taken following preparing a cash flow forecast.

I have prepared the cash flow forecast and also done a sensitivity analysis as requested if the selling price altered.

Could some one point me in the right direction as to what to include in the memo?

would it be things like credit control ensuring debtors paid on time thus ensuring that no addition interest is incurred on the bank overdraft? ensuring purchases were paid for ontime?

I hope I dont sound stupid!!!

thanks

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  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Does this help without answering the question?
    Look at your personal finances, including getting to the end of the month without going overdrawn (or exceeding the overdraft limit)?
    Somethings are fixed and you cannot be changed.
    Somethings are so small that they don't have a big effect
    Some things are large amounts and a small % could have a big effect on the cash flow over all.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • kerryhill100
    kerryhill100 Registered Posts: 121 Dedicated contributor 🦉
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    thank you so much!!

    looking at that comparing it to the cash flow forecast I have done it appears to make perfect sense!!!

    Is that normal??? lol
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    A fair amount of cash management is just sensible housekeeping.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com

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