ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -To calculate net cash flow, simply subtract the total cash outflow by the total cash inflow. Balancing cash inflow and outflow is vital to maintaining a healthy business.

Detailed explanation-2: -You’ll find this information in your financial statement. Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital.

Detailed explanation-3: -Cash inflow is the money going into a business which could be from sales, investments or financing. It’s the opposite of cash outflow, which is the money leaving the business. A company’s ability to create value for shareholders is determined by its ability to generate positive cash flows.

Detailed explanation-4: -Net Cash Flow. Net cash flow refers to either the gain or loss of funds over a period (after all debts have been paid). When a business has a surplus of cash after paying all its operating costs, it is said to have a positive cash flow.

Detailed explanation-5: -Cash inflow is the net cash amount coming into your business that you have available for a period of time. Cash outflow is the net cash amount that is going out of your business because you are paying someone else or another entity.