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Cash Flow Analysis. Chapter #6. Cash Flow Statements. Cash Flow Projection = plan of future money transactions uses a given time period, usually one year Cash Flow Summary = actual result of money transactions usually on a monthly basis. Why make a cash flow projection?.
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Cash Flow Analysis Chapter #6
Cash Flow Statements • Cash Flow Projection = plan of future money transactions • uses a given time period, usually one year • Cash Flow Summary = actual result of money transactions • usually on a monthly basis
Why make a cash flow projection? 1) what enterprises will I produce next year 2) how much of each will I produce 3) what production techniques 4) likely prices I will receive 5) when will I market those products 6) when will I pay for inputs 7) how much money will I need 8) when & how much to borrow 9) when can I repay loans