Lesson Plan

• Describe the purpose and key components of a simple cash‑flow forecast.
• Calculate net cash flow, opening balance and closing balance for each period.
• Interpret forecast results to assess a business’s liquidity position.
• Amend a cash‑flow forecast when inflow or outflow figures change and propagate the effects forward.
• Evaluate the revised forecast to recommend short‑term financing or cash‑management actions.

• Projector or interactive whiteboard
• Printed cash‑flow forecast worksheets (3‑month template)
• Calculator or spreadsheet software (Excel/Google Sheets)
• Example business case handout
• Whiteboard markers
• Sticky notes for amendment scenarios

Begin with the question, “What would happen if a major supplier delayed payment?” to connect with students’ prior knowledge of cash management. Explain that today they will learn to build, interpret, and adjust a simple cash‑flow forecast. Success criteria: correctly compute opening/closing balances, explain any amendments, and draw basic managerial conclusions.

1. Do‑now (5'): Quick quiz on cash‑flow terminology to activate prior knowledge.
2. Mini‑lecture (10'): Present the forecast structure and formulas using slides.
3. Guided practice (15'): Walk through the 3‑month example, calculating net cash flow and closing balances together.
4. Amendment activity (15'): In pairs, modify the forecast for a delayed $2,000 invoice and recalculate balances.
5. Interpretation discussion (10'): Groups analyse the revised forecast and suggest managerial actions (e.g., overdraft, payment timing).
6. Check for understanding (5'): Exit ticket – one key insight and one remaining question.

Recap how accurate opening balances and timely amendments keep forecasts reliable and support liquidity decisions. Collect exit tickets summarising the most important factor in maintaining cash flow. For homework, students will create their own cash‑flow forecast for a fictional start‑up using a spreadsheet.