Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business.
Net cash flow refers to the change in a company’s cash balance.
Formula to calculate net cash flow.
![Calculate Net Cash Flow.](https://www.learntocalculate.com/wp-content/uploads/2020/06/NCF-1024x111.png)
We also can calculate the net cash flow by adding the net cash flow in operating activities, in investing activities and in financing activities.
Example:
Determine the net cash flow of a business whose total cash inflow is $ 10,000 and the total cash outflow is $ 5,000. Determine the net cash flow of the business.
![Calculate Net Cash Flow.](https://www.learntocalculate.com/wp-content/uploads/2020/06/NCF-2.png)
Therefore, the net cash flow of the business is $ 5,000.