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Harvard Business Review Guides Ultimate Boxed Set (16 Books)
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Harvard Business Review Guides Ultimate Boxed Set (16 Books)

by Harvard Business Review, Nancy Duarte, Bryan A. Garner, Mary Shapiro, Jeff Weiss
February 2019
Beginner
3520 pages
50h 49m
English
Harvard Business Review Press
Content preview from Harvard Business Review Guides Ultimate Boxed Set (16 Books)

Profit ≠ Cash (and You Need Both)

by Karen Berman and Joe Knight, with John Case

Profit, shown on the income statement, is not the same as net cash, shown on the cash flow statement. Why should this be? Some reasons are pretty obvious: Cash may be coming in from loans or from investors, and that isn’t going to show up on the income statement at all. But even operating cash flow is not at all the same as net profit.

There are three essential reasons:

  • Revenue is booked at sale. A sale is recorded whenever a company delivers a product or service. Ace Printing Company delivers $1,000 worth of brochures to a customer; Ace Printing Company records revenue of $1,000, and theoretically it could record a profit based on subtracting its costs and expenses ...
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Publisher Resources

ISBN: 9781633697829