Forecasting Account Receivable Cash Flows
Overview
Accounts receivable represent credit that has been extended to a company's clients. They are assets of the company that
will be converted into cash assuming that the client does not default.
(see
credit risk)
Forecasting
In order to forecast cash flows from accounts receivable, we need to be able to forecast which accounts will pay off and on
which date, and also we need to be able to forecast new accounts receivable (typically from a forecast of sales)
