(Answered) Assignment franchised businesss cash flow questionsread the

Management Studies

Assignment: Franchised Business's cash flow Questions

Read the Case Study - Your Franchised Business's Cash Flow at the end of Chapter 11. Be sure to review Figure 11-8 for the Projected Cash Flow, and then answer the following questions:

1. Why is a cash flow projection considered an important tool to both the franchisor and the franchisee?
2. Explain why the net cash flow figure is negative in October, November, and April of the projected year.
3. Given the total amount of cash available, does the anticipated disbursement of cash appear to be realistic?
4. Explain how this franchised business can have a total net profit in excess of $20,000, while the net cash flow is less than $11,760.

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