Financial analysts use the projected 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 depreciation expense

Question

Quizplus · Accepted Answer

Financial analysts use the projected cash flow statement to plan for when excess cash is generated, plan for short-term cash investments, and project cash shortages and plan a strategy to deal with the shortages. However, depreciation expense is projected in the projected income statement and not the projected cash flow statement.

Financial Analysts Use the Projected Cash Flow Statement to Do