Calculating cash flow Flashcards
1
Q
What is cash flow?
A
The money flowing into and out of a business daily.
2
Q
What is a cash flow forecast?
A
Prediction of how cash will flow through a business over time.
3
Q
How can a cash flow forecast help?
A
It can identify periods where a business could have a cash flow problem.
4
Q
How do you calculate net cash flow?
A
Net cash flow = Cash inflows - Cash outflows in a given period
