A co-worker states that if the company is profitable, that guarantees that it will have positive cash

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A co-worker states that “if the company is profitable, that guarantees that it will have positive cash flow. Making profit means making money. As a result, the company should experience increased cash by the same amount it reports as net income.”


Required
Evaluate your co-worker’s statement. Identify the elements that are correct and incorrect. For any elements that are incorrect, explain why.

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Related Book For  book-img-for-question

Understanding Financial Accounting

ISBN: 9781119715474

3rd Canadian Edition

Authors: Christopher D. Burnley

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