...are inflows and outflows of cash
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Explanation:
Cash inflow is the money going into a business. That could be from sales, investments or financing. It's the opposite of cash outflow, which is the money leaving the business. A business is considered healthy if its cash inflow is greater than its cash outflow.
Extra information :
A decrease of cash (also called an “outflow” or “use of cash”) is subtracted when converting accrual net income to cash net income. For instance, if accounts receivable increased from one period to the next, then revenue would also have increased. ... Dividends are paid out, so they represent an outflow of cash.
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CASH IN FLOW
- It means that cash is going into the company.
- E.g : Receipt of a bank loan, Interest on savings and Investments and Shareholder investments etc
CASH OUT FLOW
- It means cash is going out of the company.
- E.g: Purchase of stock, Raw materials or tools, Wages, Rents and Daily operating expenses, Dividend payments, Income tax etc
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