Working Capital vs. Cash Flow: The Differences and How to Better Manage Them
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NOVEMBER 3, 2021
On the other hand, if you receive a payment of $2000, that’s considered income or revenue, you’ll generate positive cash flow that can be reinvested in other areas. . It’s important to note that cash flow doesn’t give you your net profit. For example, consider the recent chip shortage’s effects on carmakers.
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