This question aims to understand Cash Flow, when we invest our money in companies.
Let's say, if a company thinks: "We make so much money. Let's pay our people 66% more in salary." In that case, if everything else stays the same, will the Cash Flow of the company change?
And does it matter what definition of Cash Flow it is? One definition of Cash Flow I know of is,
net income + depreciation, so in that case, since
net income = revenue - COGS - wages expenses - other expenses - tax
so it seems the Cash Flow will become lower. But does it apply to all definitions of Cash Flow?