What are the factors that can affect cash inflow?
Check payments "mailed out" to firms will delay the infow of cash to the firm receiving the payment, look-up "mail float". Then the time it takes a bank to clear a check, look-up "clearing float". Another factor is the locations of the P.O. boxes where the firm receives its payments, it should always be near the firm's office collecting disbursements.
Net cash flow is calculated as follows Net cash inflow (outflow) from operating activities Net cash inflow (outflow) from investing activities Net cash inflow (outflow) from financing activities Total cash inflow(outflow) Add: Opening cash balance Closing cash balance Closing cash balance must be equal to cash balance in balance sheet.
Where is purchased inventory on credit listed on the statement of cash flows and is it a cash inflow or outflow?
Cash inflow is the money flowing in and out of a business within a given period of time. this can be predicted using a spreadsheet which will indicate the effects of changing fifures. Example of Cash inflow is: ■ Sales - amount to be received from selling good or service. ■ Cash from debtors. ■ Capital. ■ Lone from bank.
There are a number of types of cash inflow. All of them may or may not be used at any time, depending on the type of business and its activities. The different types are cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities. The cash inflow entries are then divided into total cash flow, net cash flow, free cash flow, and net free cash flow.