Learn Cash flow, the funny way!!!

 Cash flow is a funny thing.  Not funny ha ha, because that would be weird, but funny in the sense that it might appear to be redundant.  I mean, you are already measuring income, so what's the difference?

Well, my friend, the difference is that not all of the money that goes into or out of your company is related to the goods and services your company produces.  For example, if you sell an investor 50% of your company for $250,000, you must account for that money. But the proceeds from sale of stock aren't revenue.

Likewise, that depreciation from the Plant & Machinery didn't actually go away as cash, so if you want to know how much money you REALLY made, you need to add it back in.