Incisive Financial Understanding

What is the immediate impact on cash flow of the following:

1. A sudden £20k bad debt on your sales ledger?
	reduces cash need
	no impact
	increases cash need
2. An error in the month-end stock figure which makes it £20k too low in the books?
	reduces cash need
	no impact
	increases cash need
3. The books are closed off at month-end too early, failing to capture £20k of purchase invoices?
	reduces cash need
	no impact
	increases cash need
4. You omit to apportion amounts prepaid over future months?
	reduces cash need
	no impact
	increases cash need
5. Which of the following offers the greater insight into any cash flow pressures?
	Profit & Loss Account
	Balance Sheet