Can you explain what is cashflow from operations what is its use?
Shiv Answered question August 14, 2023
Cashflow for operations is basically the cash generated from core business activities. not from other activities like investing(which includes sale and purchase of assets) or financing(which includes raising capital from shares and debt repayment of capital). mathematically it can be calculated as follows.
cashflow for operations = net profit + non cash expenses – non cash income – increase in Working capital + decrease in working capital.
it shows the flow of cash from source of operations like raw material purchase to its destination like sales.
Shiv Answered question August 14, 2023
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