Cash Flow Diagram Example. A cash flow diagram presents the flow of cash as arrows on a time line scaled to the magnitude of the cash flow where expenses are down arrows and receipts are up arrows. At appropriate times expenses and costs are shown.
Let go back to the earlier cash flow analysis example that we started with ironmount corp and bronzemetal corp had identical cash positions at the beginning and end of 2007. A mechanical device will cost 20 000 when purchased. Cash flow analysis example ironmount vs.
Time line with discrete periods cash flow vectors up inflow benefit or down outflow cost interest rate.
The diagram consists of a horizontal line with markers at a series of time intervals. A cash flow diagram presents the flow of cash as arrows on a time line scaled to the magnitude of the cash flow where expenses are down arrows and receipts are up arrows. Just as with auxiliary tables cash flow diagrams can be split into separate equivalent diagrams. From our simple interest example.
