Empowering CEOs & CFOs with Automated Business Intelligence | Enabling Business Leaders Worldwide to compound their Impact & Influence with Strategic Finance Tools, Talks and Education | Top Linkedin Content Creator
Learn your Cash Flows & Master your Future. ------------------------- 💎LinkedIn restricts post length to 3,000 characters. Join The Finance Gem 💎 and get this unabbreviated Linkedin post and other finance gems delivered straight to your Inbox >>(𝗹𝗶𝗻𝗸 𝗶𝗻 my Linkedin profile & below in 𝗰𝗼𝗺𝗺𝗲𝗻𝘁𝘀) ------------------------ Regardless whether you’re a professional, an executive or a business owner, cash flow mastery will transform your future. There are 3 main types of business activities and each of them can absorb or release cash into a business. 1️⃣ Operating Activities 🎯 Primary sources and uses of cash in a company's day-to-day business operations 🎯 Cash generated from sales, cash paid for purchases and cash paid for operating expenses 🎯Key sources of cash in this section include: ♦️ Cash received from new sales in the period ♦️ Cash collected from accounts receivable (sales in prior periods) ♦️ Cash received as interest and dividends 🎯 Key uses of cash in this section include: ♦️ Cash payments to suppliers and employees (includes cash paid for current COGS and OPEX as well as those owing from a prior period, extracted from changes in Inventory and AP balances) ♦️ Cash interest payments made on debt ♦️ Cash payments made for income taxes ***Depending on the accounting framework followed, dividends and interest paid/received may be classified into financing cash flows 🎯 How to Master your Operating Cash Flow: ☑️Read in this week's newsletter 2️⃣ Investing Activities 🎯 Acquisition and disposal of long-lived assets, such as property, plant, equipment, and investments. 🎯 Investment in the future growth of your business 🎯 Key sources of cash in this section include: ♦️ Cash received from the sale of property, plant, and equipment ♦️ Cash received from the sale of investments (stocks, bonds, etc.) ♦️ Cash received from repayments of loans made to others 🎯 Key uses of cash in this section include: ♦️ Cash paid for the purchase of property, plant, and equipment ♦️ Cash paid for the purchase of investments (stocks, bonds, etc.) ♦️ Cash paid out to others as loans 3️⃣ Financing Activities 🎯 include transactions with the company's owners and creditors 🎯 Key sources of cash in this section include: ♦️ Cash received from the issuance of common stock or preferred stock ♦️ Cash received from the issuance of debt (bonds, loans, etc.) 🎯 Key uses of cash in this section include: ♦️ Cash paid to repurchase common stock or preferred stock ♦️ Cash paid for the repayment of debt (bonds, loans, etc.) ♦️ Cash paid out to shareholders as dividends 🎯 How to Master your Financing Cash Flow: ☑️ Read in this week's newsletter What cash flow insights would you add? ______________________________________________________ ➕ Follow me for more finance, business, and cash flow insights. 🔔 Ring the bell at the top right of my profile so you don't miss out on new posts.
If you’re looking to further upgrade your finance skills check out my digital course- The Cash Flow Masterclass! https://www.oanalabes.com/courses/cashflow
Thanks for sharing
Operating cash flows are the lifeline of any business. Without cash from operations, a business cannot pay its bills. Cash from operations is the cash generated from sales minus cash paid for operating expenses.
Very useful as usual Oana
Great breakdown! I’ve subscribed cant wait to see more content like this
Great posts, helps a lot. Thanks
Really nice Breakdown of the different sections of the Statement of Cash Flows
Very useful
I love that you share this! Thanks so much 👍🏼
Empowering CEOs & CFOs with Automated Business Intelligence | Enabling Business Leaders Worldwide to compound their Impact & Influence with Strategic Finance Tools, Talks and Education | Top Linkedin Content Creator
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