TITLE

Positive cash flow doesn't equal profits

AUTHOR(S)
NEWPORT, ALAN
PUB. DATE
June 2013
SOURCE
Wallaces Farmer;Jun2013, Vol. 138 Issue 6, pBP2
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article discusses the misconception that positive cash flow equates profitability. According to economist Stan Bevers, the use of cash flow as a financial diagnostic tool is dangerous unless the cash flow accounts for all the cost and the net worth is increasing. The three largest expenses in a ranch's profit category which include depreciation, labor, and purchased feed are discussed. A chart is presented depicting the opposites of costs and profits. INSET: The best is good at everything.
ACCESSION #
88054252

 

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