Net cash flow refers to the difference between cash inflow and cash outflow. There are three kinds of cash flow generated by enterprise operation, namely, cash flow generated by enterprise operation, cash flow generated by investment activities and cash flow generated by financing activities.
The difficulty in compiling cash flow statement is to determine the net cash flow generated by operating activities. Because there are relatively few fund-raising activities and investment activities in enterprise business, financial data are easy to obtain.
Therefore, it is easy to fill in the cash flow items of these two activities, and it is easy to ensure that the net cash flow results of these two activities are correct, so it is easy to ensure that the net cash flow generated by operating activities calculated according to this formula is correct.
The result of this calculation can verify whether the item of "net cash flow from operating activities" in the main table and supplementary materials is filled in correctly.
Cash flow classification:
(1) Cash flow from operating activities. Business activities refer to all transactions and matters except investment activities and fund-raising activities, including selling goods, providing services, operating leases, purchasing goods, receiving services, manufacturing products, advertising, promoting products, paying taxes, etc.
(2) Cash flow generated by investment activities. Investment activities refer to the purchase and construction of long-term assets of enterprises and the investment and disposal activities that are not included in the scope of cash equivalents, including the investment in obtaining or recovering equity securities, the investment in purchasing or recovering bonds, the purchase and construction of fixed assets, intangible assets and other long-term assets.
(3) Cash flow generated by financing activities. Financing activities refer to activities that lead to changes in the scale and composition of enterprise capital and loans, including absorbing equity capital, capital premium, issuing bonds, borrowing funds, paying dividends and repaying debts.
Baidu Encyclopedia-Net Cash Flow