What Is Net Cash Flow, And More Importantly, Why Net Cash Flow?

What is net cash flow? This term is thrown around a lot in business. It is obviously an important thing for owners and managers to understand. To keep things simple, we can define net cash flow as the amount left after subtracting a business' total cash payments from its total cash receipts. Why is it important in determining the financial health of a business? What transactions are included in the calculation of net cash flow? This article will briefly, but clearly answer these and other questions about net cash flow.

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