Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.
Net cash flow refers to the change in a company’s cash balance.
Formula to calculate net cash flow.
We also can calculate the net cash flow by adding the net cash flow in operating activities, in investing activities and in financing activities.
Example:
Determine the net cash flow of a business whose total cash inflow is $ 10,000 and the total cash outflow is $ 5,000. Determine the net cash flow of the business.
Therefore, the net cash flow of the business is $ 5,000.
