Cash Flow Forecasting

You are working as a Corporate Finance. Your manager asks you to use Cash Flow Forecasting to answer a real business or investment question and present a decision-ready output.

Show that you can apply Cash Flow Forecasting in a practical analyst workflow, not only explain the theory.

• Define the business model and key operating drivers.
• Create clean input, historicals, forecast, output, and checks tabs.
• Separate assumptions from formulas.
• Decide base, upside, and downside scenarios before modeling.

1. Build historical P&L, balance sheet, and cash flow lines.
2. Create drivers for revenue, cost, margin, capex, working capital, and debt.
3. Link the statements and add balance checks.
4. Create scenario and sensitivity outputs.
5. Write a finance-manager style summary with the main movement, risk, and decision required.

• Brief
• Model or notebook
• Charts or dashboard
• Resume bullet
• Source and assumption log
• One-page executive summary
• Final output file

• Company annual report
• Quarterly filings
• Investor presentation
• Public industry data
• Synthetic operating dataset if company data is unavailable

• Statements link without hardcoded balancing plugs.
• Checks clearly flag model errors.
• Drivers explain the business rather than only formulas.
• Scenario outputs are easy to compare.
• Summary tells a decision-maker what changed and why.

• Problem: explain the business question and why it matters for Corporate Finance.
• Method: describe the data collected, assumptions made, and analysis performed.
• Decision: state the recommendation, key risk, and what would change your view.