Cashflow Statements
Today we are discussing about cashflow Statements and importance of same in our business activities. Cashflow comes in company from Operating Activity ,Financial Activity ,Investing Activity . 1) Operating Cashflow :- Working Capital CapEx :- Capital Expenditure like computers office and furnitures . OpEx:- Operating Expenditure like LigjtBill ,Salary of staff . 2) Financing Cashflow :- On debt Basis taken from.financial institution . 3) Investing Cashflow :- Investment done by company to reduce costs . Free Cash Flow :- Operating Cashflow - Investing Cash Flow This figure must be positive all times . Credit sales is not part of cashflow Statements ,it will be part of operating inflow after credit period ends. Cash sales is operating cash inflow . If you study the cashflow of startup company ,3-5 years old company and well established firm you found that from Negative to Positive in some years . Indirect Method Netincome + Depr...