The factors which has to be taken into consideration while computing the cash outflows and cash inflows are as follows:-

1) Net income which is provided by the operations.

2) Non-cash expenses

3) Loss and gain on sales on assets.

4) Non-cash current assets and liabilities except payable notes and dividends payable.

5) Cash collection which is the major principle component of the cash flow and it is the actual cash which is

being received during accounting period which has to be taken from the customers

6) Financing which result in the change in size and composition of the equity capital and it also show the activities result of the borrowings of the enterprise.

7) It also includes issue shares and equity instruments.