Projected Cash Flow Model by Activities for Decision Making in Private Companies in Peru

Abstract

The objective of the research was to develop a projected cash flow model by activity, a situation that is not shown in traditional cash flows. The article uses a deterministic cash flow model based on the liquidity position at the date on which the financial statement is formulated, according to which the total cash flow, that is, the net change in cash, will be realized according to the balance of the Statement of Cash Flows, Operating Flows and the Investment Flows that may be present, although they are infrequent and at the same time are normal activities of a company. It also shows a contribution to the theories and practices is the expansion of knowledge in financial theory on cash resources, which were confirmed by the research and conclusions regarding the analysis of open capital companies in the emerging market. It was concluded that the analyzed model can form the basis for improving decision making and finance management in companies.