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Projected Cash Flow Statement Analysis Chapter 5.1
Projected Cash Flow Statement Analysis Chapter 5.1
period. It provides useful information about a company’s ability to generate cash from
operations, maintain and expand its operating capacity, meets the company’s financial
obligations and pay dividends. The statement of cash flows is used by managers in
evaluating past operations and in planning future investing and financing activities. It is
also used by external users such as investors and creditors to assess a company’s
profit potential and ability to pay its debt pay dividends. The statement of cash flows
also reports three types of cash flow activities; such as, from operating activities,
Projecting the cash flow for five years foresees if the business has a consistent
ability to generate cash from its operations. For the first year of operations, the business
has cash flows from operating activities worth Php_________. Its cash flow used in
investing activities is Php_______ and from its financing activities Php ________ with a
total ending balance of Php __________. For the fifth year of operations, its cash flows
from operating activities is worth Php_________, and from its financing activities is Php