3 financial statements:

Cash flow statement (only after the actual payment has happened)
Balance sheet
Income statement (as soon as the activity is accrued)
 
3 major cash flow categories:
Final change in Cash flow =operating + investment + financing cash
flow
Operating cash flows (CFO)
 Core business
 directly generated by manufacturing or selling a product
 Keep the business operating
Investement cash flows (CFI)
 Long-term investments into assets (property or plants)
Financing cash flows (CFF)
 Activities such as inssurance and repurchase of bonds, equity,
and dividends
 
如何算 cash flow?
在 income-statement 中，可以算出 operating cash flow
因为
EBIT - working capital (earnings before interest and
taxes)=gross profit-deprecitation，
所以
Actual cash flow=EBIT+depreciation-taxes
 
在 balance sheets 中，可以算出 investment and financing cash
flow
Cash-outflow=increase of assets
Cash-inflow=decrease of inventory
 
Cash-inflow=increase of equity/liabilities
 
 
Net cash flow: the amount of money being transferred in
and out of the business' accounts. It reports whwther a
company's liquid assets are increasing or decreasing. Positive
net cash flow indicates that a company can reinvest in
operations, pay expenses, return cash to shareholders, and
pay off debt.
 
Net cash flow = cash inflows - cash outflows
Net cash flow = CFO + CFI + CFF
 
Free cash flow: the amoount of cash left over after all
operating expenses, and capital expenditures are taken care
of. It reports whether a company is strategically acquiring
and utilizing ist available cash. Having free cash flow indicates
that a company can pay dividends and engage in share
buybakcs with its shareholders
Free Cash flow 的作用是算 company valuation
 Free cash flow
 important for investor
  Depicting the amount of cash which can flow to a
company's security holders im terms of dividends or
interests without necessary money for daily
operations
 To determin the company value applying
discounting principle
 
算 free cash flow 的原则
从 company's income 入手
加上算 EBIT 时被减去的，但是没有对现金流产生实际影响的 cash
(amortization, depreciation)
减去为了维持目前经营需要付出的 cash（taxes, working capital,
capital expenditure）
 

Operating income 不是 working capital

Operating income 是 EBIT
Working capital 是为了维持经营所需要付出的现金流，包括了：
Change in inventory
Change in accounts receivable
Change in accounts payable