How To Calculate Cash Flow 15 Steps With Pictures
A negative cash flow indicates that you are spending more than you are earning. A positive cash flow indicates that you are earning more than you are spending. You need to have a large enough positive cash flow that you can continue to invest in your company’s growth. Next, calculate the outflow. Cash outflows from operations include cash payments for goods purchased, cash payments for notes to suppliers, cash payments to employees, cash paid for taxes, fees, and fines, and interest paid to creditors....