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Profit vs Cash Flow (Part 2)

09-22-2020 10:17 AM By Colin - Comment(s)

Picking up the conversation from Part 1...


Net Working Capital (NWC) is a bit trickier.

  

NWC is made up of the changes in balance sheet accounts for Accounts Receivable, Inventory, and Accounts Payable/Credit Cards. An increase in an asset account causes a decrease in cash flow while an inc...