Question

What is the cash flow formula?

Answer 1

The formula for calculating cash flow are:

• Cash flow forecast = beginning cash + projected inflows – projected outflows = ending cash.
• Operating cash flow = operating income + depreciation – taxes + change in working capital.
• Free cash flow + net income + depreciation – change in working capital – capital expenditure.

Also see:

• What Is Operating Cash Flow?
• MCQs on Cash Flow Statement
• Difference Between Cash Flow and Fund Flow