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Cash Flow Statement Glossary

Adapted from content excerpted from the American Express® OPEN Small Business Network


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

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