Cash Flow Analysis and Forecasting

Exam Questions: 75
Course Level: Basic
Pages: 386 | Content: 368, Supplemental: 18
NASBA Area of Study: Accounting
Not Acceptable for: Enrolled Agents
Version: 7125D

This course provides practical instruction on all aspects of historical cash flow analysis. It is written from a cash flow-centric point of view, and provides an overview of the risks to be managed in preparing cash flow forecasts. It includes topics such as understanding how cash flows in a business, the analysis of the cash flows of businesses in various stages, the restatement of cash flows of a business, and cash flow analysis and credit risk. PLEASE NOTE: This course uses British terminology. Not accepted for Enrolled Agents. All course material provided. No prerequisites. Course level: Basic.

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Course Information

Table of Contents
  • Understanding How Cash Flows in a Business
  • Understanding Cash Flows Properly
  • Start-up, Growth, Mature, Decline
  • Restating the Cash Flows of a Real Business
  • Restating US GAAP Cash Flows
  • Analysing the Cash Flows of Mature Businesses
  • Analysing the Cash Flows of Growth Businesses
  • Growth and Mature - Further Analysis Issues
  • Analysing the Cash Flows of Start-up Businesses
  • Analysing the Cash Flows of Decline Businesses
  • What to Do About Bad Cash Flows
  • Cash Versus Profit as a Measure of Performance
  • Cash Flow Analysis and Credit Risk
  • Cash Flow Analysis and Performance Measurement
  • Analysing Direct Cash Flow Statements
  • Generating a Cash Flow Summary from Profit and Loss Account and Balance Sheet Data
  • Summarising Historic Free Cash Flow
  • Introduction
  • Spreadsheet Risk
  • Good Practice Spreadsheet Development
  • The Use of Assumptions in Spreadsheet Models
  • To recall various cash flow items of a business
  • To recognize the various sections of a cash flow statement
  • To identify characteristics of businesses in the four different life-cycle stages for businesses
  • To recognize the most common method in preparing cash flow statements
  • To recall the background and source of a US GAAP cash flow statement
  • To recognize the cash flow issues of mature businesses
  • To recognize the cash flow issues of growth businesses
  • To recall the components of net working assets
  • To recognize the cash flow issues of start-up businesses
  • To recognize the cash flow issues of decline businesses
  • To identify causes for a cash flow shortfall
  • To recognize the differences between cash flow and profits
  • To identify the impact of credit risk in analyzing cash flow statements
  • To identify which financial ratio is best for measuring success
  • To recall how direct cash flow statements are prepared
  • To identify problems an analyst would encounter if a cash flow statement is not available
  • To recognize the components of free cash flow
  • To identify issues of forecasting cash flows
  • To recognize the process and problems in creating spreadsheets
  • To recall some of the techniques recommended to reduce spreadsheet risk through good modeling practice
  • To identify what is meant by a real forecast

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