Financial analysts use the projected cash flow statement to do all of the following EXCEPT:

Question

Quizplus · Accepted Answer

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

Financial Analysts Use the Projected Cash Flow Statement to Do