Lesson Plan

• Describe what a cash flow forecast is and identify its key components.
• Explain why cash flow forecasting is essential for liquidity and decision‑making.
• Calculate net cash flow from given inflow and outflow figures.
• Analyse a simple forecast to spot potential cash shortfalls.
• Apply forecasting insights to suggest actions that improve working capital.

• Projector and screen
• Whiteboard and markers
• Printed cash‑flow forecast worksheet (sample data)
• Calculator or spreadsheet software (e.g., Excel)
• Handout summarising components and benefits of cash flow forecasts

Start with a quick poll: “When a business runs out of cash, what usually goes wrong?” Connect this to students’ prior knowledge of profit vs. cash. Explain that today they will learn how a cash‑flow forecast helps avoid those problems. Success criteria: students will be able to define a forecast, calculate net cash flow, and use it to make basic managerial decisions.

1. Do‑now (5’): List possible cash inflows and outflows for a local shop; share on the board.
2. Mini‑lecture (10’): Define cash flow forecast, present components (inflows, outflows, net flow) and the formula.
3. Guided example (12’): Walk through the sample three‑month table, calculate net cash flow and discuss opening/closing balances.
4. Group activity (15’): Teams complete a simplified forecast for a fictional business, identify any projected deficit.
5. Discussion (8’): Groups present findings; highlight why early warning of shortfalls matters for planning and stakeholder confidence.
6. Plenary (5’): Recap key take‑aways; exit ticket – write one action a manager could take if a cash deficit is forecast.

Review the definition, calculation steps, and why forecasting supports liquidity and decision‑making. Collect exit tickets and remind students to complete a personal cash‑flow forecast for homework, applying the same structure to their own income and expenses.