The document discusses project cash flow analysis, which involves analyzing a project's initial investment, operating cash flows, and terminal cash flows to determine its rate of return, value, liquidity problems, profit quality, and risk level. Key information needed includes comparative balance sheets, profit and loss statements, and additional data. Cash flow statements reveal success or failure of cash planning, add efficiency to cash management, help determine likely cash flows, disclose inward and outward cash movements, and play a vital role in short-term financial planning and internal policy formulation, serving as a supplemental tool to the funds flow statement.

1. Project Cash Flow Analysis
By
Mangesh S Kulkarni

2. Important Parts of Cash Flow
● Initial Investment (spend at the beginning of the project)
● Operating Cash Flow (= Cash Receipts- Cash Payments)
● Terminal Cash Flow (cash inflows generated after the
completion of project)

3. Objectives
● To determine a project's rate of return or value
● To determine problems with a business's liquidity
● Act as an alternative measure of a business's profits
● To evaluate the quality of income generated by accrual
accounting
● To evaluate the risks within a financial product

4. Information required for the Cash Flow Analysis
Comparative Balance Sheets
Profit and Loss Account
Additional Data

5. ● Disclose the inward and outward movement
● It plays a vital role in short-term financial planning
● Help to management in formulating policies related to
internal financial management
● Supplemental to funds flow statement
● Better tool of analysis
Advantages of Cash Flow Statement

6. Advantages of Cash Flow Statement
● Reveals Success or Failure of Cash Planning
● Adds Efficiency to Cash Management
● Helps to determine the likely flow of cash