Financial analysts use the expected cash flow statement to do all of the following EXCEPT:
A)plan for when excess cash is generated.
B)plan for short-term cash investments.
C)project cash shortages and plan a strategy to deal with the shortages.
D)project sales.

Question

Quizplus · Accepted Answer

The expected cash flow statement helps to project cash inflows and outflows, as well as identify potential cash shortages and excess cash. It is not intended to project sales, which is typically the role of a sales forecasting model or tool.

Financial Analysts Use the Expected Cash Flow Statement to Do