Monday, September 21, 2009

Hello visitors, now I want to share some example about cashflow. I hope this can help you when you learning cashflow.

Cash flows are classified into:

  1. Operational cash flows: Cash received or expended as a result of the company's internal business activities. It includes cash earnings plus changes to working capital. Over the medium term this must be net positive if the company is to remain solvent.
  2. Investment cash flows: Cash received from the sale of long-life assets, or spent on capital expenditure (investments, acquisitions and long-life assets).
  3. Financing cash flows: Cash received from the issue of debt and equity, or paid out as dividends, share repurchases or debt repayments

All three together - the net cash flow - are necessary to reconcile the beginning cash balance to the ending cash balance.

Ow yeah, please give me some comment, if this post is important. Maybe we can share some more example so we can discuss together.








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