What is Cash Flow?
Cashflow is the amount of money that flows in and out of a business over a given period.
It includes both cash from operations (sales, revenue) and cash from investing activities (purchases, payments for investments).
Imagine your bank account in terms of cash flowing from one side to the other.
If more money comes in, than goes out, you have positive cash flow; if more money goes out than comes in, you have negative cash flow.
A business should maintain a positive cash flow to remain in operation.