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Projected Cashflow Statement
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In the previous chapters on Companies we have said that the Cashflow Statement is part of their financial statements.
The Cashflow Statement identifies the inflows and outflows of cash during a specific period. The Cashflow Statement presents the users of financial statements with useful and relevant information, for example, answers to the following:
- Was sufficient cash generated from operations to pay the interest charges, dividends and taxation.
- How was the expansion financed, etc.
Before we discuss the format of the Cashflow Statement, we are going to discuss the meaning of certain concepts that are used in the Cashflow Statement.