Business – 5.3 Forecasting and managing cash flows – Cash flow forecasts | e-Consult
5.3 Forecasting and managing cash flows – Cash flow forecasts (1 questions)
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Answer 3
Step 1 – September closing balance (which becomes October opening balance):
- September closing = Opening + Receipts – Payments
- September closing = £5,600 + £9,400 – £7,200 = £7,800
Therefore, October opening balance = £7,800.
Step 2 – October closing balance:
- October closing = Opening (Oct) + Receipts – Payments
- October closing = £7,800 + £8,100 – £6,500 = £9,400
Summary table:
| Month | Opening Balance (£) | Closing Balance (£) |
| September | 5,600 | 7,800 |
| October | 7,800 | 9,400 |
Thus, the closing balances are £7,800 for September and £9,400 for October.