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Therefore, when calculating cash flow from operating activities, loss on sale of fixed assets should be added back and profit on sale of fixed assets should be deducted from net profit. Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company's cash flow statement. Calculating Net Cash Flow From Operating Activities. The company’s current assets and current liabilities on 31 March 2019 are shown below. Konum olarak rahat ulaşılabilen restoranlardan bazıları Hotel Restaurant godwin.am casino de l'Agriculture, Hotel Pension Gerard ve Bistrot Le Voilà. Therefore, no cash was paid to creditors or collected from debtors during the year. Under the direct method, the information contained in the company’s accounting records is used to calculate the net CFO. A home renovation company could ask its existing clients to recommend its services to neighbors and friends who might need similar services. It shows how much cash is coming in and going out of the company, and it can be used to make important decisions about how to allocate resources. If you’re not familiar with the cash flow statement, don’t worry – in this blog post, we’ll give you a rundown of everything you need to know. We’ll start with a definition of the cash flow statement and then move on to discuss its purpose, how it’s used, and what information it contains.