The Cash Flow Index

 
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Cash flow is the movement of money in and out of the business. It is commonly used in planning the funding requirement of the business, either on a short or long-term basis by ...[Continue]

Basically, the profit that you get from your business is considered to be your savings and may be used to fund other things such as loans and mortgages. However, in case that you ...[Continue]



How is cash flow measured in a business?


Author: Charly Applegate, Cash Flow Expert

Basically, cash flow is composed of two components: the cash inflow and the cash outflow. You can measure cash inflow by the receipts from sales, the proceeds of share issues and assets disposal, and other sources of income.

You can measure cash outflow by the payments to the suppliers and personnel, the capital and interest repayment for loans, dividends, tax responsibilities, and capital expenses.

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