Question
How to compute the cash flows?
Answers
Cash flow is the movement of the money in and out of the business which results in high availability of the cash. The cash flow calculation is simple and it is calculated by adding the after tax income and bookkeeping expenses that result in deduction of the items which has not be paid out in cash. The cash flow in few months will be negative only which should not be taken as a negative sign as it won't effect the business much. The cash balance should not go below zero as it will be same as negative balance in the account.   Your Comment




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