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Operating cash flows

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Operating cash flows

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • November 5, 2021 at 10:53 am #639995
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    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 ?

    November 5, 2021 at 3:55 pm #640014
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    Yes, you are correct.

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