Cash inflow for a given period is literally the sum of all the cash amounts flowing into a business during that period. Cash inflow is the sum of all the positive cash flows or all the incoming payments during a given period. Cash outflow, on the other hand, is the sum of all the outgoing payments during a period.
Examples of Cash Inflow
Cash Inflow can have different meanings for companies active in different sectors or industries. All companies receive cash for services they provided or products they have sold. However those are not the only cash inflows for a business.
Below is a list of examples of cash flows that are part of cash inflow:
- Cash payments that you receive from your customers, for product or services that your business delivered to them
- Interest payments you receive on your savings account
- Interest payments you receive because you lent money in a loan to someone
- Rent payments you receive for real estate that your business is renting out
- Tax refunds you receive from the government
- Dividends you receive on investments your business made (e.g. shares in other companies)
- Cash sales of property, plant, and equipment
- Cash sales of investments your business made
- Cash collections from borrowers (loan repayments)
- Cash you receive because you borrow money (from a bank or other party) in a new loan
- Cash you receive because your business is selling shares or issuing new shares