Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: interpret a simple cash flow forecast
Learning Objective/s:
  • Describe why cash flow is critical for business sustainability.
  • Explain the components of a cash flow forecast (opening balance, inflows, outflows, net flow, closing balance).
  • Interpret a three‑month cash flow forecast to identify surplus and deficit periods.
  • Apply simple calculations to update balances and propose actions for deficits or surpluses.
  • Evaluate the usefulness of cash flow forecasts for decision‑making and financing.
Materials Needed:
  • Projector and screen
  • Printed cash‑flow forecast worksheets (one per student)
  • Calculators
  • Whiteboard and markers
  • Spreadsheet template (Excel/Google Sheets) for extension activity
  • Handout of interpretation steps
 Introduction:

Begin with a quick poll: “What would happen if a profitable business suddenly ran out of cash?” Connect this to the previous lesson on profit & loss statements. Explain that today’s success criteria are to read a cash‑flow forecast, calculate net cash flow, and suggest realistic actions for any deficits or surpluses.
Lesson Structure:
  1. Do‑now (5'): Students list reasons cash is vital for a business on sticky notes; share a few responses.
  2. Mini‑lecture (10'): Teacher defines a cash flow forecast, walks through each column using the projected three‑month table displayed.
  3. Guided practice (15'): Whole class calculates net cash flow and closing balances for January‑March, checking work on the board.
  4. Interpretation activity (10'): In pairs, students identify months with deficits or surpluses and brainstorm appropriate actions (e.g., overdraft, accelerate receivables, invest surplus).
  5. Consolidation (5'): Pairs present one key action; teacher records ideas on a master chart.
  6. Exit ticket (5'): Individually write one numeric insight from the forecast and one action plan for a cash‑deficit month.
Conclusion:

Recap the steps for interpreting a cash flow forecast and the importance of acting on deficits and surpluses. Collect exit tickets to gauge understanding. For homework, students complete a cash‑flow forecast for a hypothetical start‑up using the provided spreadsheet template.