4 COMMON TERMS IN CASH FLOW

1. Cash at Beginning / End of Period

->  Cash that is available in your hand/bank at the beginning/end of period

• Cash from / (Spend on) Operating Activities

-> Transactions that are generated from the business daily operations & has direct relation to the company’s products/services.

-> Example of inflow includes cash received from sales activities

-> Example of outflow includes payments for raw materials, staff costs, rentals, taxes, etc

• Cash from / (Spend on) Investing Activities

-> Transactions that are generated from investing activities

-> Example of inflow includes cash proceeds from disposal of investments (property), dividends, rentals

-> Example of outflow includes purchase of assets (car/property), investment in shares.

• Cash from / (Spend on) Financing Activities

-> Transactions that will result in changes of size & composition of equity/borrowings.

-> Example of inflow includes fund injection from own, borrowings (bank, others), angel investors, etc

-> Example of outflow includes loan instalment/settlement, dividend payment, withdrawal for own use.