Forecasting cash flows of industrial enterprises in the context of implementing their development strategy: Accounting, analytical, and organisational aspects

The availability of cash at the disposal of any industrial enterprise provides a sense of economic freedom in the implementation of its development strategy. The total cash indicator is directly dependent on the cash flows across various types of activities. To meet the informational needs of managerial personnel of an industrial enterprise, the ability to forecast projected cash flow indicators is essential. The aim of this article was to present a methodology for forecasting the cash flows of industrial enterprises to ensure the successful implementation of their development strategies. A comparative analysis of statistical indicators of cash flows in Ukrainian bakery enterprises had made it possible to determine the share of cash in their total assets and to calculate their liquidity ratios. Analytical calculations have revealed predominantly low liquidity ratios, both at the national level and among individual bakery enterprises in Western Ukraine, with values falling below the normative thresholds of 0.1-0.2. The article presented indicators on cash flows generated from various types of activities of Ukrainian bakery enterprises, enabling the conclusion that there was a direct relationship between cash flow dynamics and the actual cash balances held in enterprise bank accounts. The dominant cash flow was the one generated from operating activities. It was this flow that should provide the main source of cash for the enterprise and serve as a driving force for both investment and financial activities. The balance among cash flows from various activities wasn’t conform to standardised norms, but rather reflected the individual strategic vision of the enterprise’s owner, as implemented by the hired personnel. Forecast calculations of cash flows were crucial for the implementation of any enterprise’s development strategy. The article systematised approaches to organising cash flow forecasting. It outlined the construction of a cash flow model from operating activities, taking into account the forecasted sales volume. The practical significance of the research findings lies in the methodological substantiation of cash flow forecasting indicators, which can be utilised by economic entities in the industrial sector to predict both operational and strategic performance indicators