The document outlines the universal business cash flow cycle which shows that assets are equal to debt plus equity on the balance sheet. It depicts the flow of cash from lenders and customers through sales, costs, expenses, net operating cash flow, debt service, taxes, and distributions to investors and reinvestment. Key steps in the cycle include equity and debt funding, acquiring assets, producing goods/services, sales income, paying suppliers, debt service, taxes, distributions to investors, and reinvestment for growth.

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Universal Business Cash-FlowCycle ©
DEBT
EQUITY
BALANCE SHEET
ASSETS = DEBT + EQUITY
---------------------------------------
LENDERS
CUSTOMERS
INVESTORS
SALES INFLOW
(Costs)
(Expenses)
_________________________
NET OPERATING C FLOW
(Debt-Service)
(Income Taxes)
(Distributions to Investors)
________________________
CASH FLOW
ASSETS
• Landlord
• Suppliers
• Labor
• Etc.
• State
• Uncle Sam
2
1
3
4 5
6
7
8
10
9
1. Equity Funding
2. Debt Funding
3. Acquisition ofAssets
4. Production of Goods & Services
5. Sales Income
6. Payments to Suppliers of Goods & Services
7. Debt-Service (Principal& Interest)
8. Payment of Taxes
9. Earnings Distributions
10. Reinvestment for Growth
Reinvestment
Investors