how do you calculate cash flow to creditors
However a company with a higher more efficient turnover rate would be able to generate cash very. Cash flow is not the same as profit.
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Profit is the surplus amount after total costs have been deducted from sales.
. By paying creditors of the business- creditors are suppliers who supplied items to the business but were not paid at the time of supply. For example if inventory cannot be turned quickly a company might run into cash flow problems. The cash flow cycle.
It includes all income and payments incurred in the year whether already received or paid or to not yet.
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