Grade 12 Cash Flow Worksheet
This worksheet covers key concepts of cash flow, including its components, calculation, and importance for Grade 12 financial literacy students.
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Grade 12 Cash Flow Analysis
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Read each question carefully and provide thoughtful, accurate answers. Show all your work for calculations.
1. Which of the following best defines 'cash flow'?
The total assets owned by a company.
The movement of money into and out of a business or personal budget.
The profit a company makes in a fiscal year.
The total liabilities of an individual.
2. Which of the following is considered a cash inflow?
Paying rent
Receiving a salary
Purchasing a new car
Paying utility bills
3. A positive cash flow indicates that a business or individual has more than .
4. The three main categories of cash flow are operating, investing, and activities.
5. Explain why managing cash flow is crucial for both individuals and businesses.
Match each term with its correct definition.
6. Operating Activities
a. Cash used for or generated from buying or selling assets.
7. Investing Activities
b. Cash generated from or used in the normal course of business.
8. Financing Activities
c. Cash used for or generated from debt, equity, and dividends.
9. Sarah's monthly income is $4,500. Her expenses include rent ($1,200), car payment ($350), groceries ($400), utilities ($150), and entertainment ($200). Calculate Sarah's net monthly cash flow. Is it positive or negative? What advice would you give her based on this calculation?