When a broker lists a business 'gross' and 'cash flow' in a 'For Sale' listing is cash flow the same as income?

Br />Not exactly. Cash flow simply refers to the flow of cash into and out of a business over a period of time. Watching the cash inflows and outflows is one of the major management tasks of an owner.

The outflow of cash is measured by those checks you will write every month to pay salaries, suppliers, and creditors. The inflows are the cash you receive from customers, lenders, and investors. You can have positive cash flow (cash "in" to the business exceeds cash "out" of the business) or negative cash flow (cash "out" of the business exceeds cash "in" to the business).

Positive cash flow is good; the only real worry is what to do with the excess cash. Negative cash flow is usually not good and can signal that the business is in trouble. There are three components of a cash flow statement: 1.

Operating cash flow (or "working capital"--generated by sales of your product or service of your business--since it is generated internally it is under your control, which is good), 2. Investing cash flow (generated from investments in plant and equipment or other fixed assets, or other uses of cash outside normal operations), and 3. Financing cash flow (cash to and from external sources such as lenders).

Profit, on the other hand, is Revenues less Expenses, and to truly identify how profitable a business is over a specific time period, you must first identify ALL revenues and expenses for period in question, usually one year. I could go on, but this answer is already too long. I recommend you Goggle for "Profit" and "Cash Flow" on the 'Net, or pick up a business book in your local library.

Good luck! Too put this in simple terms:If cashflow(sales) are advertised as $1 million, and expenses (not including owners(your) wages are 900K, the business makes 100K net per year. You'd probably draw a salary of 60K-80K and be left with corperate profit of 20K-40K.

Not exactly. Cash flow simply refers to the flow of cash into and out of a business over a period of time. Watching the cash inflows and outflows is one of the major management tasks of an owner.

The outflow of cash is measured by those checks you will write every month to pay salaries, suppliers, and creditors. The inflows are the cash you receive from customers, lenders, and investors. You can have positive cash flow (cash "in" to the business exceeds cash "out" of the business) or negative cash flow (cash "out" of the business exceeds cash "in" to the business).

Positive cash flow is good; the only real worry is what to do with the excess cash. Negative cash flow is usually not good and can signal that the business is in trouble. There are three components of a cash flow statement: 1.

Operating cash flow (or "working capital"--generated by sales of your product or service of your business--since it is generated internally it is under your control, which is good), 2. Investing cash flow (generated from investments in plant and equipment or other fixed assets, or other uses of cash outside normal operations), and 3. Financing cash flow (cash to and from external sources such as lenders).

Profit, on the other hand, is Revenues less Expenses, and to truly identify how profitable a business is over a specific time period, you must first identify ALL revenues and expenses for period in question, usually one year. I could go on, but this answer is already too long. I recommend you Goggle for "Profit" and "Cash Flow" on the 'Net, or pick up a business book in your local library.

Good luck! Too put this in simple terms:If cashflow(sales) are advertised as $1 million, and expenses (not including owners(your) wages are 900K, the business makes 100K net per year. You'd probably draw a salary of 60K-80K and be left with corperate profit of 20K-40K.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.

Related Questions