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Projected Cash Flow Statement
Completion requirements
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In the previous chapters on Companies we have said that the Cash Flow Statement is part of their financial statements.
The Cash Flow Statement identifies the inflows and outflows of cash during a specific period. The Cash Flow 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 Cash Flow Statement, we are going to discuss the meaning of certain concepts that are used in the Cash Flow Statement.