more accounting Flashcards
1
Q
Why isn’t income cash?
A
Because it includes future revenues, like accounts receivable
2
Q
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A
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3
Q
What is cash flow from a high level
A
Cash from Operations + Cash from investing(long term assets) + cash from Financing(changes in long term debt and equity)
4
Q
How do you get cash flow from operations
A
Net income - non cash expenses(depreciation) income statement - accounts receivable, + accounts payable, - inventory
5
Q
How do you get cash flow from investing?
A
how much you spent on investing -(x)
6
Q
How do you get cash flow from financing
A
short term debt - long term debt + equity
