Asked by
Robyn Pretorius
on Nov 07, 2024
Verified
To fully understand the effects of a proposed project, operating cash flows should be developed as part of the project's pro forma statements.
Operating Cash Flows
The cash generated from the primary revenue-producing activities of a business, indicating its health and ability to generate funds internally.
Pro Forma Statements
Financial statements prepared to show the effects of future events or transactions, typically used in projections.
- Recognize the necessity of creating pro forma statements individually for planned projects.
- Appreciate the array of techniques for estimating operating cash flows (OCF) stemming from project endeavors.
Verified Answer
JA
Learning Objectives
- Recognize the necessity of creating pro forma statements individually for planned projects.
- Appreciate the array of techniques for estimating operating cash flows (OCF) stemming from project endeavors.
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