Cash Flow Statement Glossary

Use this glossary of terms to familiarize yourself with all of the potential components of a cash flow statement.

Cash sales	Income from sales paid for by cash
Receivables	Income from the collection of receivables
Other income	Income from investments and the liquidation of assets
Total income	Cash plus cash sales plus receivables plus other income
Material (merchandise)	The raw material used to manufacture a product or the cash outlay for merchandise, or the supplies used in the performance of a service
Direct labor	The cost of labor required to manufacture a product or deliver a service
Overhead	Fixed and variable expenses required for the production of the product and operation of the service
Marketing/sales	Salaries, commissions, and other direct costs associated with the marketing and sales departments
R&D	Labor required to support Research and Development
General and Administrative	Labor required to support general adminisitrative functions
Taxes	Taxes, with the exception of payroll taxes
Capital	Capital needed to obtain equipment
Loan payments	Total of payments required to reduce long-term debts
Total expenses	The sum of material, direct labor, overhead expenses, marketing, sales, G&A, taxes, capital, and loan payments
Cash flow	Difference between total income and total expenses
Cumulative cash flow	Difference between current cash flow and cash flow from previous period

FAQ’s	Introductory Elements	Business Description	The Market
Development & Production	Sales & Marketing	Management	Financials