How can we evaluate the cash flows

Question

How can we evaluate the cash flows?

Answer 1

Cash flow is the movement of the money in and out of the business that results in high accessibility of the cash. The cash flow computation is simple and it is computed by adding the after tax income and bookkeeping expenditures that result in deduction of the items that has not be paid out in cash. The cash flow in only some months will be negative only that must not be taken as a negative sign as it would not affect the business much. The cash balance must not go below zero as it will be same as negative balance in the account.