Chapter 19: Cash flow

the sum of cash payments to a business less the sum of cash payments from the business

payments in cash made by a business, such as those to suppliers and workers

payments in cash received by a business, such as those from customers (debtors) or from the bank, e.g., receiving a loan

the sum of cash payments to a business (inflows) minus the sum of cash payments made by it (outflows)

estimate of a firm’s future cash inflows and outflows

cash held by the business at the start of the month

cash held at the end of the month becomes next month’s opening balance

estimated difference between monthly cash inflows and outflows

monitoring of debts to ensure that credit periods are not exceeded

unpaid customers’ bills that are now very unlikely ever to be paid

expanding a business rapidly without obtaining all the necessary finance so that a cash flow shortage develops