Accounting / July 19, 2018 / Khloe Santiago
Receipts are the amount of cash a business takes in during any one accounting period. Receipts are cash sales, as well as money received on a customer's account. Receipts also include any cash received in the business from any source, including loan or credit line proceeds or funding from investors. Cash receipts are shown on the cash flow statement, which is helpful in showing how much money is available for the business to pay its financial obligations.
The cash flow to debt ratio reveals the ability of a business to support its debt obligations from its operating cash flows. This is a type of debt coverage ratio. A higher percentage indicates that a business is more likely to be able to support its existing debt load. The calculation is to divide operating cash flows by the total amount of debt. The total amount of debt includes short-term debt, the current portion of long-term debt, and long-term debt.
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