A cash flow projection shows a firm if and when it needs to borrow money, how much is needed, and how it will repay any loans. It is also known as a cash flow budget. Preparing a cash flow projection for a period of time is important because it allows a business to determine if it will have enough cash or if additional funds are needed to avoid insolvency. The document recommends watching a video on how to prepare a cash flow projection that provides guidance on the process.

2. Cash Flow Projection
• A cash flow forecast shows if a firm needs to
– borrow,
– how much,
– when, and
– how it will repay the loan.
• Also called cash flow budget or cash flow projection.
• Preparing cash flow for a period of time is important
because if a business runs out of cash and not able to raise
additional cash, it will become insolvent.

3. Cash Flow Projection

4. Cash Flow Projection
• Look at the link on the next slide and watch the video
‘How to Prepare Cash Flow projection’

5. Cash Flow Projection
• Go to:
– Cash Flow Projection
– Brad Flynn
https://www.youtube.com/watch?v=kFHD9GA3QoE