# unit 3 P2

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unit 3 P2
Introduction
In this assignment I will inform about two main ways of managing business finance is to use break even and cash flow forecasting I will include advantages and disadvantages.
Cash flow forecasting
Is outflows and inflows putted together; usually outflows and inflows are crated in Microsoft Excel. In Microsoft Excel really easy to calculates inflows and outflows because of a formulas that do all the maths for example “=B1+B16” this formula will add box number (B1) and (B16) together, even if number in box (B1) will changed the answer will change as well. The whole system counting money that are entering the business and coming out is called “Cash Flow.”
Break even analysis
Break even analysis are used to determine how much sales volume your business needs to start making a profit. Break even analysis usually created to make graph in order to create one you need to know formula which is “Fixed Costs divided by (Revenue per unit - Variable costs

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