Which of the following statement is/are not correct?
Answer & explanation
Correct answer: option 4
Cash Flow Projection shows how cash is expected to flow in and out of your business. For
you, it's an important tool for cash management, letting you know when your outflows are too
high or when you might want to arrange short term investment to deal with a cash surplus. As
part of your business plan, a Cash Flow Projection will give you a much better idea of how
much capital investment your business idea needs.