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1. Calculation formula for net cash flow
The sliding hole in the calculation formula for net cash flow is: net cash flow=net cash flow from operating activities+net cash flow from investing activities+net cash flow from financing activities. Net cash flow from operating activities=operating income - operating expenses. There are two types of net cash flow: operating and investment. Operating net cash flow refers to the description of cash inflows and outflows in the normal operating conditions of an existing enterprise. Generally used for the overall evaluation of corporate assets, some are also used for the overall evaluation and individual evaluation of intangible assets. The calculation formula is as follows: operating net cash flow=net profit+depreciation - additional investment. Investment net cash flow is a description of the outflow activities of cash inflows during the entire life cycle of a company that plans to build, expand, or renovate, including the construction period, investment period, and delivery period. The calculation formula is: investment net cash flow=investment net cash inflow - investment net cash outflow. Investment net cash inflow=sales revenue+fixed asset residual value recovery+current asset recovery. Investment type net cash stool yield outflow=fixed assets investment+injected working capital+operating cost+sales tax and surcharges+income tax rate.
2. Three formulas for net operating cash flow
The three key formulas for net operating cash flow are as follows
1. Net cash flow positive volume (NCF)=operating income - cash cost - income tax 2 Net cash flow=Net profit+Depreciation 3 Net cash outflow=(operating income - related cash outflow - depreciation) * (1- ta
1. Definition of cash flow Cash flow refers to the amount of cash inflows and outflows generated by an enterprise through operating activities, investing activities, financing activities, and non recurring items during a certain accounting period, based on the cash receipts and payments basis. It is the total increase or decrease in cash and cash equivalents of the enterprise during a certain period. Cash flow issues may lead some companies that could have survived to bankruptcy. Profit is not equivalent to cash, it is only an accounting treatment. Normally, cash flow in investment decisions refers to net cash flow (NCF). The cash here includes both monetary assets and the realized value of related non monetary assets such as raw materials, equipment, etc.
Secondly, the characteristics of cash flow. The judgment of cash flow cannot be based solely on intuition.
. Do not attempt to calculate solely with your brain. Selling a curved sail does not mean that you have received cash, and the occurrence of expenses does not mean that you have immediately borne the corresponding cash outflow. Before converting inventory into cost of sales, it is usually necessary to purchase, pay, and store it first. The increase in inventory will consume cash. Before sales begin, you may need to purchase the product or complete production. Usually, at the beginning of sales, your supplier has already requested payment from you. This is a simple rule of thumb: for every 1 yuan increase in inventory, your cash will decrease by 1 yuan. Working capital is a key capability for the survival of enterprises. Technically speaking, working capital is an accounting term that refers to the balance of current assets minu