Back to investing school, part three - what is cashflow?

[@maltesetony9030]

Good, grown-up stuff.

[@davidhogan9170]

Can you please clarify the maths arriving at the minus 35 million cash flow quoted as I must have missed something? Many thanks.

[@davidhogan9170]

Actual cash paid out for purchases with 25% credit is £60m (75%×£80), actual cash received on sales £25m (25%×£100m), so total cash flow is £25m-£60m= -£35m for the business.