Cash flow
- Created by: Sumtimesadness
- Created on: 24-02-14 19:58
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Cash flow is the amount of cash flowing into and out of the business over a period of time
Cash inflow = cash flowing into the business such as payments from debators, bank loans and captial invested
Cash outflows = cash flowing out of the business such as payments on loans, purchasing assets and wages.
Net cash flow= cash inflow-cash outflow
cash flow cycle = the regular pattern of cash inflow and outflow of a business
Cash coming in
- Credit from suppliers and customers
- cash from suppliers and customers
- bank loan
- bank overdraft
- sales revenue
- government grants
- investors
Cash flowing out
- rent
- wages
- electricity bills
- bank loan
- bank overdraft
- suppliers t
- taxes
cash is the immediate spending power- without enough cash bills cant be paid
delay between outflows of cash and inflows of cash
- amount of cash at the beginning of the cycle
- length of time to convert inputs into outputs
- level of credit payments by customers
- amount of…
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