Accounting / July 19, 2018 / Pearl Bailey
Cash from operating activities excludes the amount spent on capital expenditures such as new equipment and new facilities, the cash used for other long-term investments, and the cash received from the sale of long-term assets. Cash from operating activities also excludes the amount paid to stockholders in dividends or to acquire treasury stock, the amounts received from issuing stock and bonds, and the amounts spent to retire bonds.
No matter what motivated you to start or what your business does, the inherent purpose of every business is to generate a profit. That means in order to know whether or not your business is succeeding, you need to understand how it’s doing financially.
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