170k views
3 votes
50 PTS!!!!! PLEASE!!!!

50 PTS!!!!! PLEASE!!!!-example-1
User Youhans
by
8.3k points

2 Answers

6 votes

Net cash flow represents the financial outcome, whether positive or negative, that a business experiences during a specific time frame.

It can be calculated as follows: Net Cash Flow = Total cash inflow - Total cash outflow.

Here are some examples:

  • In scenario A, the business gained $25 because it had $300 coming in and $275 going out.
  • In scenario B, the business suffered a loss of $150 as it received $150 but spent $300.
  • In scenario C, there was a minor loss of $5 with $95 as income and $100 as expenses.
  • In scenario D, the business had a net gain of $190, given that it earned $270 and had $85 in expenses.
  • In scenario E, a substantial profit of $320 was achieved, with $400 in income and $80 in expenditures.
  • In scenario F, a net profit of $245 resulted from $345 of income and $100 of expenses.

The cumulative cash balance for a given period adds up these individual net cash flows. For six months, it would be calculated as: $25 - $150 - $5 + $190 + $320 + $245 = $630.

User Klinger
by
8.0k points
1 vote

Net cash flow refers to the amount gained or lost by a business in a given period of time.

Net Cash Flow = Total cash inflows - Total cash outflows

  • A = $300 - $275 = $25
  • B = $150 -$300 = $-150
  • C = $95 -$100 = $-5
  • D = $270 -$85 =$190
  • E = $400-$80 = $320
  • F = $345 -$100 = $245

Cumulative cash balance = Net cash flow in the given period of time

  • G = $25
  • H = $-150
  • I = $-5
  • J = $190
  • K = $320
  • L = $245

Cumulative cash balance for the 6 months = $25 -$150 -$5 +$190+$320 +$250 = $630

User Gabino
by
7.7k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.