| Summary: | This paper will use the literature to examine techniques used in practice to develop a cash flow forecast for a local firm which will remain anonymous. During the process of developing the forecasts several obstacles were encountered which required adaptation of methodology. This process resulted in developing two cash flow forecasts and a method that can be adapted by companies in similar situations. A model was also built for the client with variable inputs that can be used to examine different scenarios in the future.
For the purpose of developing a forecast, a sample of 23 monthly historical data was used for the past two years (FY2013, 2014) starting from August 2012 to June 2014. To close the gap for the financial year, forecasting of future cash flows was based from July 2014 to July 2015, a period of 13 months.
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