1) What would be the most important factor of the working capital cycle?

Why?
The most important component in working capital cycle is Cash and Cash
equivalents. Because cash metrics and shows how efficient a business is,
also is a daily necessarily for business, as the requirement amount of cash
to make routine payments, cover unexpected costs, and purchase basic
materials used in the production of goods. In other words, cash makes a
business thrive.

2) How can forecasting cash flow help you with the future of your
business activity?
Cash flow forecasting involves estimating your future sales and expenses. A
cash flow forecast is a vital tool for your business because it will tell you if
you’ll have enough cash to run the business or expend it. It will also show
you when more cash is going out of the business than in. It can be a very
useful tool because prevents you to invest in a wrong time, having
consequences in your profits and business activity.

3) Provide examples of cash inflows in a buss activity and how they can
be forecasted?
Examples of cash inflow include:
 Costumer payments.
 Return on investments.
 Interest you receive on loans you have given to another entity.

A good way to forecast cash inflows is calculating it. Just subtract the
amount of cash you plan on spending in a month from the amount of cash
you plan on receiving. This will be your “net cash flow”. If the number is
positive, you may receive more cash than you spend.
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