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A cash flow statement is basically a statement that explains how the cash will be flowing in to a company. For example considering construction industry the initial investment will be done by the contractor to begin with the project. As project progresses the number of activities that he will be doing in parallel will be more. Hence if a project is having a duration of a year or two, then the month wise amount spending for the activities to be carried out during that month has to be calculated over the entire period of the project. The cash flow for a typical construction industry or any other industry will be a S Curve. A S-Curve distributed evenly over the period of the project is preferable. Now in order to map the progress of the actual work

as against initial cash flow, just super pose this on to the original S-Curve. If the actual curve is below the original S-Curve then it indicates that the progress of work is below the original, and if it is above then it denotes that the progress is good and healthy.

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โˆ™ 2007-08-10 17:51:37
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Q: How do you prepare a cash-flow statement?
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