The methodology presented here is recognized under GAAP and practiced by accountants in a similar form in all firms across the world. This allows uniformity, comparison between geographically dispersed firms, and acceptance and conformation to recognized standards. All these are needed by the biological firms mentioned here because they generally neglect this part of their business. This stuff fits together in the following way, using conventional accounting terms. Then subtract owners' income taxes from net firm income to get net income, which is the bottom line for all firms.
Net income is the source for principal payments, firm reinvesting and owners' salaries.
All of the net income is consumed among these three. In corporate finance, retained earnings increase the firm's equity and the remainder is paid out as dividends. It is possible to link the enterprise budgets of a firm to the firm's budget by adding up the enterprise budgets and then, when sales are included, convert the firm's budget to an income statement. This statement, along with the enterprise and firm's budgets, provide practically all the data necessary for the subsequent cash flow. Things fit nicely if the asking price includes total costs and the four additional costs.