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If a firm has a lot of net cash flow, does that mean the firm’s balance sheet cash account must be high?.

Sagot :

No, if a firm has a lot of net cash flow, does that mean the firm’s balance sheet cash account must be high

The cash flow or coins equivalent that the organization gets or offers out by using the way of charge(s) to lenders is called coins float. cash go with the flow analysis is frequently used to examine the liquidity role of the organization.

Cash flow is a measurement of the quantity of coins that comes into and out of your business in a particular time frame. when you have fantastic coins go with the flow, you've got greater coins entering your commercial enterprise than you've got leaving it—so you will pay your payments and cover different fees.

Upload your internet earnings and depreciation, then subtract your capital expenditure and change in operating capital. loose coins drift = net income + Depreciation/Amortization – alternate in working Capital – Capital Expenditure.

Learn more about cash flow here:https://brainly.com/question/735261
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