Importance of Generating Cash Flow and How to Forecast Cash
Duration: 90 Minutes
By taking up this webinar you will understand the importance of generating cash flow and also add another tool to your toolbox which will allow you to make better credit decisions.
Many people may have financial statements in front of them but they do not know what they are looking for. In the past people would just look at the income statement to see if a firm increased sales and profits and the balance sheet to make sure their debt amount was not out of control. From these two financial statements they would make either a lending decision or a credit decision or an investing decision. However, you must look at the statement of cash flows because a company could be profitable and have increasing sales; however, they could still go bankrupt if they cannot generate cash.
Objectives of the Presentation
After attending the webinar people will be able to:
Why Should you Attend
- Define why generating cash is important
- Describe how they will be able to better forecast cash for their companies
- Discuss how to analyze statement of cash flows
- Explain why they need to look at the statement of cash flows as well as an income statement and balance sheet to make a sound credit decision
- Identify the documents and work they need to do to help them better project cash flow
To get a complete step by step understanding of what information is in a cash flow statement; how to interrupt what you have in front of you and understand that a company must be able to generate cash from operations to be continued forward. The second part will give you a method of how to be able to forecast your monthly cash flow within 5% each month.
Who can Benefit
- Give scenarios of how important cash is to: Bankers, Businesses, investors
- Explain why it is difficult to move ahead without the use of cash
- Great example of a company that has doubled sales, tripled profit but could not generate cash- what happens?
- Explain the indirect method of doing a cash flow statement in detail
- Discuss the direct method of the cash flow statement
- Show process from start to finish of how to interrupt a statement of cash flow (Indirect Method)
- Discuss importance of forecasting cash- who needs it and why
- Go through the three steps I have devised to be able to project cash on a monthly basis with 5% each month
- Discuss variables that could affect your company in the cash flow process
- Credit Analysts
- Collection specialists
- Controllers of small- large businesses
- Bank loan officers
- Treasury analysts
- Financial Analysts
- Business Analysts
- Small-Medium business owners