------------------------------------------------- importance of cash flow management
Week 3: Analysis
January 28, 2015 eduardo ramirez
January 28, 2015 eduardo ramirez

Importance of Cash Flow 1. The per year cash flow short fall can be calculated as by formula
Cash flow for any year = Latest year minus previous year
And, cumulatively by adding up the shortfalls over the year and adjusting them accordingly
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
$10M $15M $10M $50M $15M $30M $21M 2. The different options that are available to make this project go are many to discuss. The cash flow predicting is a very imperative and valuable instrument for any type of business. In many illustrations related to small and medium enterprises, they encounter problems in business productions, as they are unable to bond day-to-day monetary gaps in dealings. This is a common scenario. Cash flow forecast occupies an important place amongst many financial reports prepared for businesses. When a daily cash flow forecast is prepared, the customs from which cash comes in and goes out are obviously shown on regular center in the specific month. This sympathetic is very ample for a manufacturer to take decisions. It is indispensable to smear the knowledge and the experience of previous months to make daily cash flow statement. Likelihood of getting the number of returned cheques minimized is a singular advantage of cash flow forecast request. Scheduled expenses can be prearranged rendering to the cash influx pattern. In other words, expenditure items can be prioritized. Payments of bills, which can be delayed, can be prearranged for the days with sufficient cash arrival. It is essential to buy stocks at the right time in right quantities. Cash flow forecast facilitates the Board of finances too (BusinessCaseStudies, n.d.).
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