Cash flow, trend analysis
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1. How can an organization with a loss show a positive cash flow?
2. Why is trend analysis more beneficial than a single period of information?
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1) How can an organization with a loss show a positive cash flow?
2) Why is trend analysis more beneficial than a single period of information?
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1) How can an organization with a loss show a positive cash flow?
When calculating the Profit/Loss of an organization all expenses (whether cash or non cash) expenses are deducted from the revenue.
As an example, depreciation is a non cash expense. There is no outflow of cash on account of depreciation during the period in which Profit/Loss is being calculated. However, when we calculate the Profit/Loss we deduct the depreciation expense.
As an ...
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