18. See Convenience Corner scenario 05834-01 Specimen.

Kirsten relies on the profit which Convenience Corner makes to support her family.

Other than by increasing sales, state one way in which Kirsten could increase
Convenience Corner’s profit.

[1]

19(a). See Convenience Corner scenario 05834-01 Specimen.

Kirsten has produced a cash flow forecast for Convenience Corner’s next six months of
trading. [4]
Cash flow forecast for Convenience Corner: July – December 2016
Jul Aug Sep Oct Nov Dec
Cash inflows £27,000 £26,000 £27,000 £32,000 £33,000 £35,000 20. See Convenience Corner scenario 05834-01 Specimen.
Cash outflows £28,000 £30,000 £29,000 £22,000 £31,000 £23,000
Using the information in Fig. 1 and any other relevant information, should Kirsten be
Net cash flow (£1,000) (£4,000) (£2,000) £10,000 £2,000 £12,000 concerned about the sales performance of Convenience Corner? Give reasons for your
Opening balance £2,000 £1,000 (£3,000) (£5,000) £5,000 £7,000 answer.
Closing balance £1,000 (£3,000) (£5,000) £5,000 £7,000 £19,000 [12]

State the meaning of each of the following terms:

• opening
balance

• net cash
flow

[2]

(b). Using the data given in the cash flow forecast, analyse the cash flow position of Fig. 1 – Quarterly sales for Convenience Corner 2013 - 2015
Convenience Corner.

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