A major deficiency of the statement of cash flows is that it doesn't explicitly consider non-cash transactions. A company with profits which increase yearly is, by definition, successful. An increase in an asset is a source of funds.
Depreciation is a use of funds.
A forecast balance sheet could be estimated based on a firm's past financial ratios. The cash budget is only as useful as the accuracy of the forecasts used in preparing it. The basic information needed to construct a flow of funds statement is found on the income statement. Used by permission. All rights reserved.