How do you calculate cash flow for a business?

Answer by  Att4372 (1704)

Start with Net Income. Add back non-cash expenses, which are Accrued Interest, Accrued Taxes, Depreciation, and Amortization. Cash flow is called EBITDA (earnings before Interest, etc.)

Answer by  tamarawilhite (17883)

Cash flow starts with a budget of expected expenses. It then subtracts the estimated income from the expected expenses. Actual cash flow is income minus expenses; if cash flow is negative, the business is losing money. Cash flow reveals the business' profit. The valuation of a business is several times its annual cash flow.

Answer by  turkworker (1007)

Cash flow is defined as the movement of money in and out of a business and the resulting availability of that cash for your business use. It can be calculated by adding up yournet after-tax income plus any bookkeeping expenses that result in items being deducted but not paid out in cash.

Answer by  tamarawilhite (17883)

Cash flow is the difference between income and outgo. Determine the income per month, then subtract all expenses and losses. The result is the cash flow, which can be negative.

Answer by  joe34 (57)

You would first look at all the cash flow going out and then compare it to all the cash flow coming in.