ANALYSIS OF THE EFFECT OF NET PROFIT AND ACCRUAL COMPONENTS ON PREDICTING FUTURE OPERATING CASH FLOWS IN MANUFACTURING COMPANY

Abstract

This research aims to analyze the influence of Net Profit and Accrual Components on Future Cash Flow Predictions in Manufacturing Companies, either partially or simultaneously. The analytical method used is multiple linear regression analysis with classic assumption test prerequisites, followed by partial significance using hypothesis testing, namely the T test, while simultaneously using the F test with a significance level of 5%. The research results show that partially the variables net profit and changes in inventory have a positive and significant effect on the prediction of future cash flows, while the variables changes in receivables and changes in payables have no effect on the prediction of future cash flows. Simultaneously, the variables net profit, changes in inventory, changes in receivables, and changes in debt influence predictions of future cash flows. The adjusted r-squared value in this study was 54.3%, while the remaining 43.7% was influenced by other independent variables. The differences in this research lie in the research object, research time, measuring tools, literature used, theory used, and research results. This research is expected to be able to provide benefits in the financial sector for  a company by analyzing the influence of Net Profit and Accrual Components on Future Cash Flow Predictions.