cash flow forecast
Definition
A projection of a company's financial position in the future based on anticipated receipts (account receivables, asset sales) and disbursements (accounts payable, payroll, interest expense, dividends) over a period of time. Used to gauge future liquidity needs and profitability.
Use cash flow forecast in a sentence
“ My department manager asked me to prepare a cash flow forecast for our department so he could determine how many new people he could hire. ”
“ After reading the cash flow forecast of a new start-up company, the investor decided that the potential future profits were not worth the risk. ”
“ The managers in operations were upset to find out that their budgets had been cut due to the cash flow forecast that the owning firm had received. ”
