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Moving from e-business to bricks and mortar: impact on cash

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So basically they are moving into another sector of the business, from mail order to the actual department store and have spent cash flows in order to generate business and other cost pertaining the department structure of the business. But how does that relate to the relationship of net income and working operations etc. Just that they have less cash now because of the cost of generating new business?

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Solution Summary

Solution explains in everyday language suitable for a novice, how the move from internet selling to a retail store might impact the statement of cash flow.

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Yes!

The change in the business required new investments (building, lights, cash registers), right? You can see the large outflows under investing for this -- especially in ...

Solution provided by:
Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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