Lesson Plan

• Describe the cash‑flow equation and its relevance to short‑term cash management.
• Explain four practical strategies for overcoming a short‑term cash‑flow problem.
• Analyse a cash‑flow forecast to identify a cash shortfall and select an appropriate remedy.
• Evaluate the advantages and limitations of each remedial strategy.

• Projector and screen
• Whiteboard and markers
• Printed cash‑flow forecast worksheets (including the example table)
• Calculators
• Handout summarising the four strategies
• Sticky notes for brainstorming
• Short video clip on overdraft facilities (optional)

Begin with a quick poll: “What would happen if a profitable business ran out of cash tomorrow?” Connect this to students’ prior knowledge of cash flow forecasts and set the success criteria – students will identify cash‑flow problems and propose realistic short‑term solutions.

1. Do‑now (5’) – Quiz on cash‑flow basics using the whiteboard.
2. Mini‑lecture (10’) – Review the cash‑flow equation and why short‑term cash shortages occur.
3. Case‑study analysis (15’) – In pairs, examine the provided three‑month cash‑flow table, identify the February shortfall and calculate the deficit.
4. Strategy brainstorming (10’) – Groups list possible actions (overdraft, delay payments, accelerate receipts, defer asset purchase) on sticky notes and discuss pros/cons.
5. Role‑play negotiation (10’) – Simulate negotiating extended supplier terms and offering early‑payment discounts to customers.
6. Whole‑class debrief (5’) – Groups share their chosen remedy and justify it using the forecast data.
7. Exit ticket (5’) – Each student writes one action they would implement and the reason behind it.

Recap the four short‑term strategies and highlight how the cash‑flow forecast guided the choice of remedy. Collect the exit tickets to gauge understanding, and assign homework: students create a simple cash‑flow forecast for a hypothetical small business and suggest one strategy to address any shortfall.