The model also takes dozens of individual projections and assumptions of what will happen to Sales, Expenses, and key drivers such as Collection Period and Inventory turnover – and combines these into an overall projection of what happens month-by-month to profits, the balance sheet, and cash flow. Some refer to this as an integrated financial statement projection because the model captures the interplay between income statement, balance sheet, and cash flow. The end result is that you have a projection of how much cash you’ll have on hand month-by-month based on your detailed assumptions about sales and expense levels, planned capital expenditures, etc.