cash flow(redirected from Cash flow forecast)
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2. In accounting, an item on a financial statement indicating cash flow.
Cash flow is a measure of changes in a company's cash account during an accounting period, specifically its cash income minus the cash payments it makes.
For example, if a car dealership sells $100,000 worth of cars in a month and spends $35,000 on expenses, it has a positive cash flow of $65,000. But if it takes in only $35,000 and has $100,000 in expenses, it has a negative cash flow of $65,000.
Investors often consider cash flow when they evaluate a company, since without adequate money to pay its bills, it will have a hard time staying in business.
You can calculate whether your personal cash flow is positive or negative the same way you would a company's. You'd subtract the money you receive (from wages, investments, and other income) from the money you spend on expenses (such as housing, transportation, and other costs).
If there's money left over, your cash flow is positive. If you spend more than you have coming in, it's negative.
cash flowthe money coming into a business from sales and other receipts and going out of the businesses in the form of cash payments to suppliers, workers, etc. Cash receipts and cash payments in a trading period are not necessarily the same as the accounting revenues and cost applicable to that same period, because customers need not pay cash for goods sold until some time afterwards while the firm may not pay for materials and services used until afterwards. Fig. 18 overleaf shows the main causes of disparities between cash flow and profit. See SOURCES AND USES OF FUNDS STATEMENT.
cash flowthe money coming into a business from sales and other receipts and going out of the business in the form of cash payments to suppliers, workers, etc.
(1) Noun:The cash available from an investment after receipt of all revenues and after payment of all bills.(2) Verb:The process of creating cash flow,as in “I think that property will start to cash flow in about a year.”A property can have positive cash flow (good) or negative cash flow (usually bad).Cash flow is not the same thing as profitability.A property can be profitable,meaning gross income less expenses, depreciation, and interest on debts results in a positive number. That same property can have a negative cash flow because of the need to pay principal payments on loans or expend money for something that represents a capital expenditure,like a new roof.