what is cash flow projection

Cash flow projection is a financial statement that outlines the expected inflows and outflows of cash over a specific period of time, typically on a monthly or quarterly basis. It helps businesses to forecast their future cash position, identify potential cash shortages or surpluses, and make informed decisions about budgeting, financing, and investment. Cash flow projections typically include estimates for sales revenues, operating expenses, capital expenditures, loan repayments, and other cash transactions.