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Operating cash flows

BBrian4y ago
Sir when there is an increase in working capital or operating cycle its very uncertain to say whether the profits will decrease or increase right ? It may or may not decrease profitability But we do need to keep in mind that without cashflows We cannot pay dividends We cannot pay wages and salaries We cannot pay the companies taxes , electricity bills etc Am I correct sir Thank you ?
John MoffatJohn MoffatTutor4y ago#1
Yes, you are correct.
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