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    Forecasting Cash Flows

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    Aditya
    Cash forecast is an estimation of the flows in and out of the firm cash account over a particular period of time, usually a quarter, month, week or dau. Cash forecast is extremely important to most firms it enables them to anticipate periods of surplus cash and periods where financing will be necessary. Managers are sometimes tempted to focus on earnings unfortunately earnings are not very useful for cash management.

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    Forecasting Cash Flows

    Uploaded by

    Aditya
    109 views4 pages
    Cash forecast is an estimation of the flows in and out of the firm cash account over a particular period of time, usually a quarter, month, week or dau. Cash forecast is extremely important to most firms it enables them to anticipate periods of surplus cash and periods where financing will be necessary. Managers are sometimes tempted to focus on earnings unfortunately earnings are not very useful for cash management.

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    Cash forecast is an estimation of the flows in and out of the firm cash account over a particular period of time, usually a quarter, month, week or dau. Cash forecast is extremely important to most firms it enables them to anticipate periods of surplus cash and periods where financing will be necessary. Managers are sometimes tempted to focus on earnings unfortunately earnings are not very useful for cash management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    109 views4 pages

    Forecasting Cash Flows

    Uploaded by

    Aditya
    Cash forecast is an estimation of the flows in and out of the firm cash account over a particular period of time, usually a quarter, month, week or dau. Cash forecast is extremely important to most firms it enables them to anticipate periods of surplus cash and periods where financing will be necessary. Managers are sometimes tempted to focus on earnings unfortunately earnings are not very useful for cash management.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 4

    Forecasting

    cash flows
    • Cash forecast is an estimation of the flows in and out of the
    firm cash account over a particular period of time, usually a
    quarter, month, week or dau. The cash forecast is primarily
    intended to produce a very useful piece of information an
    estimation of the firms borrowing and lending needs and
    the uncertainties regarding these needs during various
    future periods .cash forecast is extremely important to
    most firms it enables them to anticipate periods of surplus
    cash and periods where financing will be necessary
    anticipation enables the firm to plan much more effectively
    for investment and financing and this planning produce
    superiors returns.
    Need to focus on cash
    • Forecasting efforts on cash flows is
    focussed because of the availability of
    accounting data. information relating to
    accounts of past years is available and
    forecasting is done on that basis ,
    managers are sometimes tempted to focus
    on earnings unfortunately earnings are not
    very useful for cash management earnings
    represent an important accounting concept
    that attempts to match revenues concept
    that attempts to match revenues with the
    expenses that generated them.
    Cash forecasting horizons

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