Cash Flow

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  • Cash Flow
    • Cash flow is the term used to describe the flow of money into a business and out of a business
    • The difference between 'Cash and Profit'
      • Cash and profit are linked, they are both to do with money, but they are NOT the same
        • All the cash IN is not profit
        • Cash IN from a bank loan is NOT profit
        • Cash IN from selling shares is NOT profit
        • Cash OUT to repay a bank loan is NOT a cost
      • The main difference between cash and profit is TIME
    • Importance of Cash Flow
      • To pay wages to ensure workers come to work
      • To pay suppliers to ensure delivery of stocks
      • To pay electricity and phone

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