Cash flow versus profit
KS4 · 30 minutes · Explain why profitable firms fail.
Answer by: Type. You can change method or take a break at any time.
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Our learning goal
Explain why profitable firms fail.
Your turn: Choose one thing you would like to understand by the end.
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My lesson notes & project
Full teaching script
- Today: Cash flow versus profit. Our goal: Explain why profitable firms fail.
- Take one idea at a time. Pause after each sentence; ask for repetition whenever you need it.
- Profit is sales minus costs over a period. Cash flow is money actually in and out, when it moves. A firm can be profitable on paper and still die because customers pay in 90 days while wages fall due weekly. Cash is oxygen; profit is food.
- Together: choose one example from the explanation and show how it works. What do you notice?
- Your turn: Build a three-month cash-flow forecast for a small café.
- Reflect: what made sense, and what would you like explained differently?
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