Projected Cash Flow Statement Analysis

The Cash Flow Projection reports a company’s cash inflows and outflows for a

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,

investing activities, and financing activities. (Warren,Reeve,Duchac 2017)

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

___________, with an ending cash balance of Php _________.