You calculate cash flows from operations, which is the measure of cash coming into and going out of your business. After-tax cash flow is based on net income rather than operations.

Whether you're a business owners or a personal finance enthusais, you should know how to calculate cash flow so you can make the best money decisions.

Learning how to calculate cash flow is an important practice for your small business. Here's a simple, step-by-step process on how to calculate cash flow.

Divide the cash flow in the next year from Step 3 by your Step 4 result to calculate the residual value. Concluding the example, divide $51,000 by 0.08 to get a $637,500 residual value.

Taxes are involved with the calculations for a firm’s operating cash flow, and operating cash flow after taxes is an important metric to investors interested in a corporation’s ability to pay ...