LFK is a coal-mining business. It has 135 employees who are all provided with training. After the dismissal of one of LFK's employees there is a job vacancy for a new supervisor. External recruitment will be used. The Managing Director is preparing a cash flow forecast for LFK. An extract is shown in Table 3.1. Table 3.1 Extract from LFK's cash flow forecast July - September 2025 $000 | | July | August | September | |:---|:---|:---|:---| | Cash inflow | 600 | 400 | 730 | | Cash outflow | 720 | X | 590 | | Net cash flow | (120) | (100) | 140 | | Opening balance | 40 | (80) | (180) | | Closing balance | (80) | (180) | Y |

1. (a)Define 'dismissal'.[2]
2. (b)Calculate the value of X and Y. X: Y:[2]
3. (c)Identify four reasons why a cash flow forecast might be useful to a business.[4]
4. (d)Explain two advantages of LFK training its employees.[6]
5. (e)Do you think the advantages of external recruitment for a business are greater than the disadvantages? Justify your answer.[6]

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