Figure 1. The Financial and Material Flows through the Firm

                       CAPITAL MARKET

                       paid-in and
                       debt capital
                           :
              distribution :
              of profits   :       repayment
               -interest   :         :
               -taxes      :         :
               -dividends  :  +------+
 (expen- )                 :  :
 (ditures)                 :  :                  (revenues)
 payments   +--------------+--+---------------+  payments
 for inputs !              :  :               !  from outputs
 <----------+- accounts <- cash <- accounts <-+--------------
            !  payable             receivable !  financial process
...................................................................
            !         production flow         !  physical process
 ---------> ! ------------------------------> ! ----------------->
 physical   !                                 !  physical output
 input flow +---------------------------------+  flow

 INPUT MARKET                                  OUTPUT MARKET
