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cash flow  

Member rating: 5 out of 10 stars (4 votes) | Words: | Submitted: Tue Jan 02 2007

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Cash Flow * Money going into and out of a business. * Cash is a liquid asset * If there is not enough cash to meet demands than a company has cash flow problems. How can cash flow into a business? * Sales of goods for cash * Payment of exist debts * Sales of assets * Investors (shareholders) * Borrowing (repayable loan) How can cash flow out of a business? * Purchasing goods and assets for cash. * Cash payment for salaries and other expenses. * Buying (fixed) assets. * Repaying loans. * Paying creditors (for goods/services previously supplied on credit) Cash Flow Cycle ...

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