Lesson Plan

• Define cash flow forecast and list its key components.
• Explain why cash flow forecasting is essential for liquidity management and strategic decision‑making.
• Construct a simple cash flow forecast for a given period using provided data.
• Identify common forecasting errors and suggest corrective actions.
• Analyse a cash flow forecast to detect potential cash deficits.

• Projector and screen
• Whiteboard and markers
• Printed cash‑flow forecast template worksheets
• Calculators
• Sample business data handout
• Laptop with spreadsheet software (e.g., Excel/Google Sheets)

Start with the question, “How can a profitable business still run out of cash?” Connect to students’ prior knowledge of profit and loss statements. Explain that today’s success criteria are to create a cash flow forecast and to identify any cash shortfalls.

1. Do‑now (5'): Quick quiz on cash inflows vs. outflows.
2. Mini‑lecture (10'): Definition, purpose, and components of a cash flow forecast (slides).
3. Guided practice (15'): Work through the example table in pairs, filling missing figures.
4. Forecast building activity (20'): Using the provided data, students create a 3‑month cash flow forecast in a spreadsheet.
5. Check understanding (5'): Whole‑class review of forecasts, discuss common pitfalls.
6. Quick check (5'): Solve the April closing‑balance question on sticky notes.

Summarise the steps of preparing a cash flow forecast and why monitoring cash balances is vital. Students write one key takeaway on an exit ticket and answer: “What will you monitor to keep your forecast accurate?” For homework, they complete a cash flow forecast for a fictional startup using next month’s projected sales.