Cash Flow From Assets

Cash flow from assets is the aggregate total of all cash flows related to the assets of a business. This information is used to determine the net amount of cash being spun off by or used in the operations of a business. The concept is comprised of the following three types of cash flows: Cash flow generated by operations. This is net income plus all non-cash expenses, which usually include depreciation and amortization. Changes in working capital. This is the net change in accounts receivable, accounts payable, and inventory during the measurement period. An increase in working capital uses cash, while a decrease produces cash. Changes in fixed assets. This is the net change in fixed assets before the effects of depreciation.