A cash flow statement can be simply described as a record of the dollars coming in and the dollars going out of a business. It shows where the money comes from (the inflow of cash) and where the money goes (the outflow of cash).
Actual and Projected Cash Flow
A record of cash inflow and outflow that has already occurred in a business is an actual or historical cash flow. An estimate or forecast of cash inflow and outflow into some future period is a cash flow projection. The actual cash flow of a business provides important information for making a cash flow projection into the future. The cash flow projection reveals the cash generating ability and the cash requirements of a business and it indicates the timing of both.
Total Business and Partial Business Cash Flow
A cash flow can be set up for the entire farm business (including family living expenses and nonfarm income) or it can be set up to study only the business or a segment of the business. „Cash Flow Projection For Operating Loan Determination“ weiterlesen