This chapter is about …
Looking in more depth at the impact of changes on cash flow, such as sales volume peaks, smooth growth and how a profitable business can run out of cash.
The impact of change on cash flow
The budget forecast we set up for Widget Makers Ltd has a flat sales profile – the same volume of sales for each month of the year. This is not of course realistic; most businesses experience volume changes of some sort: they may just be fluctuations above and below a steady annual average, increases through growth, decreases through falling business, or perhaps seasonal variations. Or, during the forecast’s span, a combination of ...
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