Cash Flow Map Concept
Cash Flow Map is a financial demonstration that presents a group of cash entries and exits (availabilities) in an entity. Usually the Cash Flow Map is formed by three sections, namely:
- Operational activities: cash entries and exits related with sales and services, merchandise purchases, substances and materials and services, with employees payments, and other activities associated to the entity’s operational activity;
- Investment activities: cash entries and exits associated in fixes assets investments (by its nature is an activity that generates money exits and rarely entries, situation that can occur when is made the fixed assets sale);
- Funding activity: cash entries and exits associated to the activities or investments funding, being entries when the funding is received and exists when is made its depreciation and associated interest payments.