September 2014
Beginner
1664 pages
27h 9m
English
Content preview from The HBR Guides Collection (8 Books) (HBR Guide Series)
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73
Profi t ≠ Cash (and
You Need Both)
by Karen Berman and Joe Knight,
with John Case
Profi t, shown on the income statement, is not the same
as net cash, shown on the cash fl ow 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 fl ow is not at all the same as
net profi t.
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 re-
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I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.