Cash Flow from Operations: A Misnomer
Hey friends. I pray the Lord protect you from this new COVID strain that is circulating now. These are different times from what we’ve all known for many years. God is still on His throne and is able to provide what we need when we put our trust in Him.
This post continues the cash flow from operations theme. Note the title of the post today describes the terminology “cash flow from operations” as a wrong or inaccurate expression. Indeed, the latter portion of my prior blog post pointed out that there are no actual operating cash flows shown on the face of the Statement of Cash Flows (SCF) as presented according to the “indirect” approach. Also, recall the prior post’s comment that virtually all companies report operating cash flow using the indirect method. So, when you and I look at the SCF for the inflows and outflows of cash from doing business (operations), we don’t actually see those flows. […]