THE FORECASTING AND DIAGNOSIS ANALYSIS OF CASH FLOWS. THE CALCULATION AND COVERING OF THE TREASURY BALANCES

The treasury is the essential element through which the way of achieving results is materialized and the requirements of financial stability are respected. A firm which obtains profit not always has a positive treasury because of the gap between the expenses and revenues recorded in accounting; the statistical records show that most bankruptcies are due to the weaknesses from treasury’s management. Based on these cash flows the entire value of the enterprise, the equity capital or the debts can be evaluated. The investors are interested in comparing the profit obtained by placing money in various investment opportunities. In this way, taking as reference the size of the opportunity cost (value of yield losses compared with other investment opportunities) they can assess whether, after a year of operation of the enterprise, the value of the invested capital decreases or on the contrary, increases.