Cash flow generation

Cash flow generation - Cashflowgeneration...

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Cash flow generation: Cash Flow from Operations:  This is the key source of a company's cash generation. It  is the cash that the company produces internally as opposed to funds coming from  outside  investing  and financing activities. In this section of the cash flow statement, net  income (income statement) is adjusted for non-cash charges and the increases and  decreases to working capital items - operating assets and liabilities in the balance  sheet's current position. Cash Flow from Investing:  For the most part, investing transactions generate cash  outflows, such as  capital expenditures  for  plant, property and equipment business   acquisitions  and the purchase of investment securities. Inflows come from the sale of  assets, businesses and investment securities. For investors, the most important item in  this category is capital expenditures (more on this later). It's generally assumed that this  use of cash is a prime necessity for ensuring the proper maintenance of, and additions  to, a company's physical assets to support its  efficient
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This note was uploaded on 04/06/2010 for the course ECON 1010 taught by Professor Neugeboren during the Spring '09 term at Harvard.

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Cash flow generation - Cashflowgeneration...

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