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Is " cash flow" measured by year or month ?

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The BAF Group LLC
MD

Both, really; but for different reasons. You would measure it by the year, as a general rule and as a pricing tool. But the Buyer also needs to look at it from a monthly basis to determine what, if any seasonality is involved in the business that might cause periodic cash limitations. For example, if you have an Ice Cream Parlor in Michigan, how much ice cream do you sell in January and February. If sales are normally, very slow in those months, how do you keep your operation afloat? You still have to pay Rent, Utilities, Employees, etc.

Feb 1, 2013

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