Business Studies · Oct / Nov 2018 · Paper 12 · Question 4

Bakin Group (BG) is a limited company. It has 3 holiday parks that offer families holiday accommodation and activities. BG aims to look after its customers’ needs 24 hours a day. Customers pay for the holidays when they arrive at the park. Each park has 3 managers and 40 part-time employees. BG uses a wide range of social media networks for promotion. The Finance Director is worried about BG’s cash flow position. He cannot decide if an overdraft is the best way for BG to solve its cash flow problem. Table 1: Cash flow forecast for period January - March 2019 ($000) January February March Cash in 120 80 70 Cash out: Interest 10 10 10 Wages and other 100 90 90 costs Total cash outflow 110 100 100 Net cash flow X (20) (30) Opening balance (40) (30) (50) Closing balance (30) (50) Y

Read automatically from the paper; the printed page above is exact.