'Cash purchases' means any payment you make to suppliers with whom you don't have an account. As you don't have an account, you will have to pay for the goods at the time when you buy them.
Examples of the types of supplier from whom you might make Cash purchases include:
- cash and carries. If you offer catering facilities, you may decide to purchase all of your food and drink supplies from cash and carries, which do not generally offer credit
- filling stations that you use for purchases of fuel for the karts but that don't offer credit terms
- other suppliers from whom you make one-off, low value or infrequent purchases
Cash purchases only include items that you buy for resale. They don't include things like tea and coffee bought for use at work, or items such as business stationery. Don't include things like this here. They're covered elsewhere in the cash flow.
Remember to keep safely all the invoices and receipts for Cash purchases, even if the amounts are small.