Karen100 Case Study – Your Franchised Business’s Cash Flow

Karen100 Case Study – Your Franchised Business’s Cash Flow

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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