01-14-2006, 05:20 PM
I have created a student training excel file which examines and the difference that sales trends makes on cashflow
In the scenario the company has the same profit in 2 separate months but has considerably better cash flow from the month where the company is on a declining trend in sales (due to divestment in working capital).
The model proves this back by using good old T accounts
Free for anyone to use, hope it helps
http//www.gaapworld.com/modules.php?op=modload&name=Downloads&file=index&req=viewdownload&cid=2
Helping accountants to find answers www.gaapworld.com
In the scenario the company has the same profit in 2 separate months but has considerably better cash flow from the month where the company is on a declining trend in sales (due to divestment in working capital).
The model proves this back by using good old T accounts
Free for anyone to use, hope it helps
http//www.gaapworld.com/modules.php?op=modload&name=Downloads&file=index&req=viewdownload&cid=2
Helping accountants to find answers www.gaapworld.com