• Cash is king
  • Profit is vanity and cash-flow is sanity


Cashflow is a management tool to help avoid liquidity problems. It tracks inflows of money and the inevitable outflows.


Cash-flow statements differ – each one suited to a particular business needs

  • Simple cash-flow statement (or cash budget): arranges items into two categories – inflows & outflows
  • Operating cash-flow statement: Limits the analysis to Operational items and excludes financing
  • Financing cash-flows: Includes cash raised by new debt or equity capital, as well as expenses incurred for repaying debt or paying dividends on stock
  • Statement of cash-flow: An external statement that depicts the period to period changes in balance sheet items.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s