Term
| 1. Cash Collection from Customers |
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Definition
| =Sales (revenue) - Increase in A/R |
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Term
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Definition
| = COGS + Increase in Inventory |
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Term
| 2b. Cash Payment to Suppliers |
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Definition
| = Purchases (2a) - Increase in A/P |
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Term
| 3. Cash Payment for Operating Expenses |
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Definition
| = Operating Expenses - Increase in AEP + Increase in Prepaid Expenses |
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Term
4. Cash Payment for Taxes
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Definition
| = Income Tax Expense - Increase in Income Taxes Payable |
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Term
| 5. Cash Payment for Interest |
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Definition
| = Interest Expense - Increase in Interest Payable |
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