HOW TO CALCULATE CASH FLOW

To understand who to calculate cash flow,first you need to know what cash flow means.We can defini cash flow the movement of money into or out of business.Cash flow can be measured during aspecified period of time.Calculating cash flow measurment or others parametres we can know the value of company.
To all of us who want to know how to calculate cash flow.Cash flow can be calculate in 2 ways:

• the indirect method
• the direct method

THE INDIRECT METHOD

This method is used by vast majority of companies. because is easy to do and show reported net income.To calculated indirect method of cash-flow ,first you need to start with the profits and then make ajustments for everything that are no profits,until you get changes in cas flow.
Operating cash flow is calculate very simple with simple equation :
EBIT+Depretiation-Taxes

EBIT- earnings before interest and taxes

Ex: The company Global  reported for 2011  EBIT (operating income ) 20 000 $, depreciation 1 600 $, and taxes 7500 $

Global operating cash flow for 2011 was:   20 000$+1600$ -7500$=14100$