EBITDA Is Not Operating Cash Flow
EBITDA is often treated as a proxy for operating cash flow by finance professionals. While EBITDA is an important finance metric, it is not the same things as operating cash flow. For small businesses, the difference between them is especially important. Here’s an example. Windmill Bakery had a great year. Their income statement shows the […]
There are 2 types of cash flow that help a financial manager assess the financial condition of a small business. The first is operating cash flow, and the second is free cash flow. Operating cash flow is earnings before interest plus depreciation minus taxes. You can find this directly on a small business’s cash flow […]
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This is an example of a Cash Flow Statement otherwise known as a Statement of Cash Flows. Its three primary sections are Cash Flow From Operations, Cash Flow From Investing and Cash Flow From Financing. Cash Flow Statement For Year Ended Dec 31, 2025 Cash Flow From Operations Net earnings $200 Additions to Cash Depreciation […]
This is an example journal entry. This shows equipment being purchased for $1000 cash. The Equipment account is debited, and the Cash account is credited. Equipment $1000 Cash $1000
