Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 8

Posta contabile Importo Characteristic revenues including sales and service revenues* 2800 *non importa se oggetto di incasso immediato o dilazionato in quanto entrambi i valori (cassa e clienti) sono compresi nel CNWC Inventories 31/12 100 Characteristic costs includingpurchase of rawmaterials, wages, contributions, purchase of services, consulting, commissions, miscellaneousoperating costs** (1100) **non importa se oggetto di pagamento immediato o dilazionato in quanto entrambi i valori (cassa e fornitori) sono compresi nel CNWC (Inventories 1/1) (50) Characteristic cash flow understood in the broadfinancialsense( orfinancial cash flow expressed in terms of CNWC) 1750 Financial cash flow, understood in a broad sense (or cash flow of CNWC), represents a flow that includes, in itself, also the share of cost and revenue related to receivables and payables. This cash flow, in the broad sense, amounts to 1,750. To understand the monetary impact of this flow, it is necessary to consider net working capital. Net working capital is like a sponge immersed in liquid: if the sponge increases in volume, it has absorbed the liquid. If the sponge is "squeezed," it decreases in volume because it releases liquid. In technical terms, corporate liquidity (cash and bank) is the above liquid. Therefore, if net working capital increases, liquidity has been drained, while if it decreases, it implies liquidity has been created. The more significant the increase in net working capital, the smaller the flow expressed in terms of liquidity. Therefore, if cash flow is 1750 and net working capital has increased by 250, it means that liquidity of 250 has been drained. The cash flow (or characteristic monetary cash flow) is less than the financial cash flow by an amount equal to 250. And, the monetary cash flow (which can also be calculated simply by contrasting monetary costs (i.e., that we paid = 1000) vs monetary revenues (i.e., that we collected= 2500)) amounts to 1500. The characteristic monetary cash flow can, therefore, be represented as follows. Accounting items Amounti Core revenues including sales and service revenues 2800 Closing inventories 100 Characteristic costs includingpurchase of rawmaterials, wages, contributions, purchase of services, consulting, commissions, miscellaneousoperating costs (1100) (Opening inventories) (50) Characteristic cash flow understoodin abroadfinancialsense 1750 ∆ CNWC (250) Cash flow characteristicmonetary 1.500 Characteristic monetary cash flow is derived from the logical summation of the portion of characteristic revenues collected and the amount of typical costs subject to prompt cash payment. It can also quantify characteristic monetary cash flow without the prior determination of financial cash flow broadly. For this reason, it can also determine cash flow from the performance of the typical business activity in the following technical manner: Accounting post Importo Core revenues comprising sales and service revenues collected on a prompt cash basis 2500* *thisamountisderived from the contrastbetweentotal revenue (2800) and ∆ customers (300), the increase of whichidentifies a deferred payment granted to customers Characteristic costs comprisingpurchase of rawmaterials, wages, contributions, purchase of services, consulting, commissions, miscellaneousoperating costs paid for on a cash basis (1000)** **thisamountisderived from the contrastbetweentotal costs (1100) and ∆ suppliers (100) whoseincreaseidentifies a deferred payment obtained from suppliers Characteristic cash flow 1500 Financial Reporting Destined to External Third Parties as a Tool for Analyzing Credit Worthiness: Usefulness and Limitations. The Italian Case Global Journal of Management and Business Research Volume XXII Issue VIII Version I Year 2022 ( ) A © 2022 Global Journals 97