... much they need to produce and sell to cover the total cost and make a profit + They can find out the Margin of Safety + Aid business decision about pricing and output level + Can support loans in financial institution + Show losses and profit in different level of output - Unstable business environment - Depends on quality of information CASH FLOW Cash flow records/account the cash flowing in and out of business. Is the short-term movement of money through the business but profit is the return from the investment in the long-term. We need to manage our cash flow because we need money for day-to-day run. Managing cashflow is one of the most important aspects of financial management. Cashflow problems are the most common reason for new business failure. Forecast (prediction) and statement (what has happened), negative (poor) and positive (healthy) Forecast cashflow sets out the anticipated cash inflows and outflows over the coming months + ...

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