10-day MBA: D5 QA about Cash flow Analysis

Cash is the gasoline that makes your business run. Cash flow can be defined as the way money moves into and out of your business; it is the difference between just being able to open a business and being able to stay in business. A cash flow analysis is a method of checking up on your firm’s financial health. It is the study of the movement of cash through your business, to determine patterns of how you take in and pay out money. The goal is to maintain sufficient cash for firm operations from month to month.