Cash flow

Cash is a __ asset.

Cash flow is ....

• Money that they have available to plan the day-to-day running of the business?

• Total revenue received from sales of products

• Money coming into the business (inflow) or going out of the business (outflow) over a period of time

• Profit obtained after deducting the cost of goods sold

Examples of cash inflow include:

• Sales revenue

• Loan repayments

• Share capital

• Loan

Examples of cash outflow include:

• Payment to suppliers

• Wages/salaries

• Investments

• Share capital

Cash flow is the same as profit.

• True

• False

Why is cash flow not the same as profit?

Can a profitable business run out of cash?

• Yes

• No