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How is cash flow measured in a business?

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How is cash flow measured in a business?

Answered By Charly Applegate, Editor


Basically, cash flow is composed of two components: the cash inflow and the cash outflow. You can measure cash inflow by the receipts from sales, the proceeds of share issues and assets disposal, and other sources of income.

You can measure cash outflow by the payments to the suppliers and personnel, the capital and interest repayment for loans, dividends, tax responsibilities, and capital expenses.

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