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Assess the importance of a cash flow forecast to a business that is having problems with its customers paying on time. (6 Marks)

Respuesta :

Answer:

It aids effective planning towards business sustenance

Explanation:

Cash flow is a plan utilized by a business to project cash movement in her operation . This helps to reveal the liquidity stand of such business ahead of time .

In a situation where the result appears unfavorable , control measures are installed to ensure that the situation is managed well and business operations do not suffer.

Delayed payment by customers poses a big threat to the business but when this is known ahead , measures to ensure that the company does not run out of cash can be put in place to safeguard it.

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