Cash Flows and Net Income Comparison

The net cash flow was $613,000 while the net income was $161,150 for the year. The positive net cash flow represents the amount of money that the business received from its activities that include financing, operating, and investing. Some of this money is not directly in the form of profits but as loans, capital, and sale of inventories. On the other hand, the net profit refers to the extra money that the firm raises from its…