This book outlines the techniques required to undertake a detailed analysis of the financial statements and projects of companies, understand the cash flow dynamics of the business from both a historical and forward looking perspective, and build cash flow projection models which can be subjected to sensitivity analysis. Cash Flow forecasts help you to build a model of the way in which cash moves within a project or organisation. They help you to predict whether the sales or income you forecast will cover the costs of operation. They also allow you to analyse whether a project will be sufficiently profitable to justify the effort put into it. Cash Flow Forecasting explains how to: * Analyse and understand financial statements - annual and proforma * Build cash flow statements from historical statements or project projections * Evaluate present and future cash flows by using specialised cash flow statement ratios * Identify key variables impacting financial performance so that they can be subjected to sensitivity analysis * Run sensitivity analyses to evaluate the cash flow and debt servicing ability of a company or project, and identify potential areas of concern * Interpret detailed cash flow forecasts and understand the difference between profit and cash flow * Conserve or generate cash in the short term * Optimally configure long term debt facilities so that they are aligned with the company or project's cash flow and debt servicing capabilities * Evaluate different methods of project evaluation * Recognize the limitations of accounting information in valuing companies.