Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: amend or complete a simple cash flow forecast
Learning Objective/s:
  • Describe why cash flow forecasts are essential for business viability.
  • Identify the four components of a simple cash flow forecast and the formula linking them.
  • Calculate missing figures in a cash flow forecast using the closing‑balance equation.
  • Analyse forecast results and suggest actions to address potential cash shortages.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed cash‑flow forecast worksheets (3‑month table)
  • Calculator or spreadsheet software
  • Whiteboard and markers
  • Scenario cards for the extension activity
 Introduction:
Begin with a quick discussion: why might a profitable business still fail? Review students’ prior knowledge of cash versus profit and introduce today’s success criteria – understand the purpose of cash flow forecasts, identify key components, and accurately complete a simple forecast.
Lesson Structure:
  1. Do‑Now (5') – Students write an example of a business that could run out of cash despite being profitable; share responses.
  2. Mini‑lecture (10') – Explain the importance of cash flow forecasts, outline the four columns, and display the formula Closing = Opening + Receipts – Payments.
  3. Guided practice (15') – Whole‑class calculation of January’s closing balance, then students enter that amount as February’s opening balance.
  4. Independent activity (15') – Students complete the missing payments for February and the missing receipts & closing balance for March using the formula; teacher circulates for support.
  5. Check for understanding (5') – Quick exit quiz: write one managerial action to take if a forecast shows a negative balance.
  6. Extension (optional, 10') – Groups adjust the forecast for a 15% sales increase in April and discuss implications for inventory and staffing.
Conclusion:
Recap how cash flow forecasts help managers make informed decisions and avoid cash crises. Students complete an exit ticket stating one key step they will remember when preparing a forecast. For homework, each learner creates a two‑month cash flow forecast for a hypothetical small business.