<p> <br/></p><p>Preface ix<br/>1 Overview of cash flow forecasting 1<br/>Introduction 1<br/>What is a healthy cash flow? 3<br/>What are the uses of cash flow forecasting? 6<br/>2 Summary of financial statements 8<br/>Introduction 8<br/>The annual report and accounts 10<br/>The profit and loss account 33<br/>Problems with financial statements and auditors 35<br/>Conclusion 38<br/>3 Factors impacting financial performance 41<br/>Introduction 41<br/>Strategic analysis – the external environment 42<br/>Strategic analysis – the value chain 46<br/>Management 49<br/>Profitability and performance 50<br/>Asset management 54<br/>Capital structure 58<br/>Cash flow 63</p><p>Cash flow forecasting 66<br/>Corporate failure 70<br/>4 Cash flow forecasting of financial statements 76<br/>Why cash flow analysis? 76<br/>Purpose of projections 79<br/>Historical performance and variable input analysis 81<br/>Profit and loss statement projections 86<br/>Balance sheet projections 109<br/>Assets 112<br/>Liabilities 119<br/>Completed AmaOS forecasted balance sheet 131<br/>Cash flow projections 134<br/>Cash flow ratio analysis 144<br/>Sensitivity analysis 146<br/>Protection and control in term lending 150<br/>Conclusion 153<br/>Chapter self-test 155<br/>Chapter self-test answers 158<br/>5 Cash flow forecasting of project finance 160<br/>Introduction 160<br/>Cash flow forecasting 163<br/>Conclusion 171<br/>6 Pro forma forecasts using AMADEUS electronic databases 172<br/>Appendices 185<br/>1 Credit rating agency rating scales 186<br/>2 Country risk criteria 189<br/>3 Summary of lending types 199<br/>4 Complete AmaOS spreadsheet 200<br/>Suggested reading 209<br/>Glossary 210<br/>Profitability indicators 237<br/>Turnover and efficiency indicators 238</p><p>Financial position indicators 239<br/>Cash flow terms 240<br/>Cash ratios 240<br/>Index 243</p>