A co-worker states that if the company is profitable, that guarantees that it will have positive cash
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Understanding Financial Accounting
ISBN: 9781119715474
3rd Canadian Edition
Authors: Christopher D. Burnley
Question Posted: