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Edexcel IGCSE·Business·IGCSE Business

Cash Flow & Financial Statements

11 min read

Cash flow versus profit, cash-flow forecasts, and basic financial statements.

Cash flow vs profit

Cash flow is money in and out; profit is revenue minus costs over time. A profitable firm can still run out of cash (money tied up in stock or owed by customers) — cash flow is essential for survival.

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