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How is bank overdraft treated in the cash flow statement?
Prime purpose of preparing cash flow statement is to tally the closing bank balance with opening bank balance so if there is a bank overdraft or negative bank balance it will automatically adjusted when complete cash flow statement is prepared. If after the preparation of cash flow, cash flow balance and bank balance don't tally it means there is some mistake in cash flow statment and it should be reviewed for any correcions.
What is annuity kind of cash flow?
Annuity is fixed sum of money paid every year in at any other fixed interval shorter than a year. This annuity may be by way of return of some principal plus interest payment of against money invested or by way of payment of other dues such as pensions after retirement. In any case it represents out flow of cash from one account to in flow of cash to another account. In this way all annuities involve movements of cash or funds. Therefore all annuities are cash flows that can be suitably represented in cash flow statements. An annuity will be represented as inflow of cash in the cash flow statement for the recipient of the annuity and out flow of cash in the cash flow statement of the person or firm paying out the annuity.
Distinguish between fund flow statement and cash flow statement?
Cash book just shows the cash receipt and cash payment without distinguishing for which purpose cash is paying out while in cash flow statement difference is shown to determine that cash is coming or going out from which activity.
Identify the cash flows available to an investor in stock. How reliably can these cash flow be estimated?
Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.
What way would cash flows differ in different countries?
The cash flow is different in different countries because of the econmoy. Depending the value of the currency some countries would greater cash flow compare to poor countries.
What are the advantages of cash flow forecasting?
The advantages of cash flow forecasting are: 1.Cash flow is usually more pure. 2.Cash is a king. Once you are out of cash or you have insufficient cash to pay your interests or meet your working capital liabilities, you are bankrupt. Cash flow forecasting is very important planning tool as by using this, management can foresee that when in future they are short in cash so they can arrange enough liquidity before the situation arises as well as if they have more cash than their requirements, they can invest extra cash in short term securities and investments to earn some interest income from it.
Does a operating lease increase cash flow for the lessor?
Technically, every lease a lessor has increases cash flow to some degree, as the lease requires a rent-payment of sorts. However, for the lessor, this is simply a standard income source, rather than any particularly special cash flow.
What are some steps you can take to improve cash flow?
If you wish to improve your cash flow, you can increase your sales. You can also increase prices for slow payers or become more selective when granting credit.
Is there a legitimate real estate cash flow business?
Yes there are some legitimate options for the cash flow business. The cash flow business has been around longer than any of us although it has gotten a bad wrap lately due to a certain guru who used to run infomercials. He has since been shut down and those left offer legitimate information and training about the cash flow business.
Why is that net income does not equal cash provided by operations?
Net cash flow and net profit is not same due to inclusion of non cash items in net income that's why net income is adjusted for non cash items while preparing cash flow from operating activities.
What is cash profit?
cash gain,after adding back the nett profit(after deducting taxes)to the internally generated expenditure like depreciation and amortizatio. it is some times reffered as cash flow
What decesion effect cash flow?
Decisions that effect cash flows are receivables collections, amount of inventory to keep on hand, and investment projects. Some decisions such as increasing available inventory are a use of cash, and others are a source of cash.
