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Cash Flow Projection

Cash flow forecasting is important because if a business runs out of cash and is not able to obtain new finance, it will become insolvent. Cash flow is the life-blood of all businesses—particularly start-ups and small enterprises. As a result, it is essential that management forecast what is going to happen to cash flow to make sure the business has sufficient funds to survive. How often management should forecast cash flow is dependent on the financial security of the business. If the...


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