Cash flow

Cash flow is the amount of cash flowing into and out of the business over a period of time

Cash inflow = cash flowing into the business such as payments from debators, bank loans and captial invested

Cash outflows = cash flowing out of the business such as payments on loans, purchasing assets and wages.

Net cash flow= cash inflow-cash outflow

cash flow cycle = the regular pattern of cash inflow and outflow of a business

Cash coming in

• Credit from suppliers and customers
• cash from suppliers and customers
• bank loan
• bank overdraft
• sales revenue
• government grants
• investors

Cash flowing out

• rent
• wages
• electricity bills
• bank loan
• bank overdraft
• suppliers t
• taxes

cash is the immediate spending power- without enough cash bills cant be paid

delay between outflows of cash and inflows of cash

• amount of cash at the beginning of the cycle
• length of time to convert inputs into outputs
• level of credit payments by customers
• amount of…