Profit vs. Cash Flow:


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Profit vs. Cash Flow:
1010202Profit vs. Cash Flow: What's the Difference—and Who Cares?Many participants in our workshops are surprised to learn that instant profits and rapid growth aren't always cause for celebration. I tell them the story of The Wonder Widget Company.The startup company launched with $100,000 in cash and the hottest product in its market, the amazing Wonder Widget. The owners had sales and profits from the first month they had a product to sell! All they had to do was make the product and ship it to waiting customers who would pay enough to give Wonder Widget handsome margins from day 1. And so they leased and outfitted a factory (no cash outlay initially), leased the production equipment …
Citation
Gene Siciliano, C.M.C., C.P.A.: Finance for Non-Financial Managers. Profit vs. Cash Flow:, Chapter (McGraw-Hill Professional, 2003), AccessEngineering Export