Customers pay on time, pay late, never pay or accounts go to collections?
pay on time
positive as the cash flow
positive cash flows are inflows while negative cash flows means cash out flow from different activities.
If you don't have funds or budget your money you won't have positive cash flow. The benefits of positive cash flow are: you won't have financial issues and you will have enough money to purchase required products.
Yes, cash flow can be positive while net income is negative.
Customers pay on time, pay late, never pay or accounts go to collections?
The increase of A/P on the statement of cash flow show?
a positive effect on the cash flow
(a) It needs to be positive, and (b) cash flow without corresponding profits ultimately results in disaster.
Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.
Any cash flow that does not follow a pattern or not predictable is called irregular cash flow. For example agriculture is dependant upon monsoon and hence can not be predicted correctly, when the cash flow will happen. thus it is an example of irregular cash flow business.
NEGATIVE CASH FLOW IS WHEN YOU SPEND MORE MONEY THAN YOU HAVE COMING IN POSITIVE IS THE OPPSITE WHEN YOU MAKE MORE THAN YOU SPEND AND NUETRAL IS WHEN YOU BREAKE EVEN