Cash flow refers to cash outflow and cash inflow, and cash inflow minus cash outflow is net cash. Break-even means zero net profit, no loss, no profit. Break-even analysis is the analysis of the relationship between output, sales volume and price when the net profit is zero.

Cash flow, also known as cash flow, refers to the cash inflow, cash outflow and its total amount generated by certain economic activities including business activities, investment activities, fund-raising activities and non-recurring projects in a certain accounting period. Cash flow is an important concept in modern financial management.

According to the nature of activities, cash flow can be divided into net cash flow from operating activities, net cash flow from investment activities and net cash flow from financing activities. Strengthening enterprise cash flow management can ensure the healthy and stable development of enterprises, at the same time effectively improve the competitiveness of enterprises and provide support for the goal of maximizing profits.

The origin of cash flow is modern financial management, which refers to the total amount of funds received and paid by cash outflow and cash inflow during the whole life cycle of investment projects.

Cash flow is the necessary information to evaluate the economic benefits of investment schemes.

The specific contents include:

(1) Cash outflow: Cash outflow is the total capital expenditure of investment projects. It includes the following items:

① Investment in fixed assets. Various capital expenditures for the purchase and construction of fixed assets.

② Investment in current assets. Funds occupied by projects such as inventory, monetary funds and accounts receivable required for investment projects.

③ Operating costs. Production costs, management costs and sales expenses incurred in the operation of investment projects. Usually expressed as the balance of all costs MINUS depreciation.

(2) Cash inflow: Cash inflow is the total capital gain of investment projects.

It includes the following items:

① Operating income. Sales revenue from selling products in the course of business operation.

② Residual income or income. The residual value of fixed assets at the end of use, or the cash income from selling fixed assets before the end of use for some reason. ③ Recovered current assets. The original current assets investment shall be recovered when the life of the investment project expires. In addition, the cost reduction after implementing a decision is also regarded as cash inflow.