Leolingham2000
Management Consultant

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
IS CASH MORE IMPORTANT THAN PROFIT?
BOTH ARE EQUALLY IMPORTANT TO THE BUSINESS.
ONE AFFECTS THE OTHER.
IF THE CASH FLOW IS NEGATIVE, WHICH MEANS MORE
BORROWED WORKING CAPITAL, WHOSE INTEREST PAYMENTS
WILL AFFECT THE BOTTOMLINE [ PROFIT ].
IF THE PROFIT MARGIN IS NOT SUFFICIENT TO SUSTAIN
THE BUSINESS OPERATION , IT MEANS THERE WILL BE
LESS CASHFLOW, WHICH MEANS MORE
BORROWED WORKING CAPITAL, WHOSE INTEREST PAYMENTS
WILL AFFECT THE BOTTOMLINE [ PROFIT ].
CASHFLOW NEEDS CLOSE MONITORING,PERIODICALLY, say WEEKLY.
PROFIT NEEDS MONITORING, say , MONTHLY.
=========================================
CASH FLOW
CASH FLOW is the summary statement shows
-money receipts by the organization
-money payments by the organization
-IF THE total receipts is greater > the total payments , then cashflow is positive.
-IF THE total receipts is less < the total payments, then cashflow is negative.
REGARDS
LEO LINGHAM

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™