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how can I calculate the net profit from the cash flow for buying a gas station

I would like to know the calculation of net profit from either the cash flow or the revenue

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Answers (2)
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Shelby County, AL

Dear Sir/Madam,

We are interested in purchasing your products and we sincerely hope to establish a long-term business relation with your esteemed company.

Please kindly send me your latest catalog. Also,

inform me about the Minimum Order Quantity, Delivery time or FOB, and payment terms warranty. Please contact us via:

Your early reply is highly appreciated.

Thank You !

Best Regards,
M. Quarters
(Purchasing Manager)

Nov 26, 2012
David Collins
Glentyde Capital Advisors, Inc.
CEO / Owner
Mecklenburg County, NC

The translation in both cases (between cash flow and accounting net profit, and from revenues down to net profit) involves a (usually) significant number of accounting conventions and issues. There is no single formula or procedure, as these accounting issues will be case-specific. Just as some examples, you'll need to understand the particular accounting methodologies used in the target's financial statements regarding the company's depreciation policies, inventory turnover, receivables collection experience, trade payables experience, expense accruals, and asset capitalization policies, just to name a few. All of these issues play a role in separating net profit from cash flow, and these issues will differ from company to company.

If you're not already very familiar with accounting, you'll want an accountant helping you out when it comes to performing a careful analysis of a target company.

Nov 13, 2012