3.7 Cash Flow

Assessment Objectives
The difference between profit and cash flow	AO2

• Profit and Cash Flow Explained – a well-written explanation of profit and cash flow.

• Is Cash Flow the Same as Profit? – a concise answer to ‘How a firm’s profit and cash flow differ?’

• Accounting Profits vs. Firm Cash Flow – an article including definitions and advantages and disadvantages.

• Corporate Cash Flow: Understanding the Essentials – a more in-depth look at cash flow.

• What is the difference between net cash flow and net income? – the difference between profit and cash flow from an accounting perspective.

Assessment Objective
The working capital cycle	AO2
The relationship between investment, profit and cash flow	AO2

• Working Capital (Net Current Assets) – an explanation of working capital and the working capital cycle.

• What is a Working Capital Cycle? – Bright Hub defines the working capital cycle and explains its uses, applications, and distortions.

Assessment Objective
Cash flow forecasts	AO2, AO4

• Sample Cash Flow Statement – a detailed explanation of cash flow forecasts with several examples and suggestions on how to improve cash flow.

• Finance: Cash Flow Forecast – a concise explanation of cash flow forecasts.

Assessment Objective
The following strategies for dealing with cash flow problems: Reducing cash outflow Improving cash inflows Looking for additional finance	AO3

• 5 Ways to Improve Cash Flow

• How to Better Manage Your Cash Flow

• How Entrepreneurs Can Survive a Cash-Flow Crisis – Business Week gives advice to entrepreneurs on how to survive a cash flow crisis.