Financial Analysis

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Financial Analysis

Financial Analysis

Financial Analysis

Ways to Manage Cash flows

My company adopts different ways to manage cash flows. They are as follows:

Cut unnecessary expenses.

The best way to save cash is by cutting back on your spending. If you spend less of what you earn on a regular basis, you will find that you will be left with a considerable amount after a certain period. This would require keeping track on your spending down to the last cent if you are really keen on managing your money well this time around.

Write everything down

People find it difficult to keep track of their spending simply because they do not bother to keep a record of it. They fail to write it down on paper to see just how much their spending affects their current lifestyle. Trying to write everything down and making a habit out of it would help you see just how much you get to spend on a certain period as well as help you determine areas where you may be able to cut back.

Spend wisely

One of the main failures of money management for some people is that they just don't bother spending wisely especially on essential commodities. Since these same essentials can take the bulk out of one's regular expenses, trying to cut back on some of them can help generate considerable savings. In order to do this, you may need to do some more comparative shopping.

Try to compare prices for similar goods first before you buy them. Consider their costs and quality differences to determine your decision. This should go for most of your purchases where alternatives are always available. Avoid just trying to get the nearest or the usual products to buy simply because you have grown accustomed to them. Take some time to check out the prices and hunt for discounts more when you go out shopping this time.

Forecasted Cash flow for 3 Months

Forecasted Cash flow

Cash Flow Statement













Beginning Cash




Cash from operations




Total Available Cash








   Capital expenditures








   Cost of Sales








   Quarterly Expense Payment




   Total Disbursements




Cash Balance (Deficit)








Yes, I think that the cash flow is being effectively forecast and managed. Cash Flow is so important for small businesses with limited capital, but most business owners don't know completely how it works and inter-relates with revenues and profits. When companies are growing fast, having tough times due to the economy, or when they are experiencing seasonal or cyclical sales, effective cash flow forecasting can give owner's piece of mind and allow them to better manage their business.

Generation of Cash through Operations

Yes operations generate cash. Yes, company is generating cash from its operational activities the cash generated from the operations of a company, generally defined as revenues less all operating expenses, but calculated through a series of adjustments to net income. The OCF can be found on the statement of cash flows. Also known as "cash flow provided by operations" or "cash flow from operating activities".

One method of calculated OCF is: Operating Cash Flow ...
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