Pl = Cf

information · 2007-01-11 17:38:19

If I only have overheads and start off with no assets and and purchase no assets and introduce no funding into the company Should My yearly Net PL Figure = My yearly Net CF Figure I know in practise its not possible becasue you would be spending money you don't have, but just to check my figures is the above statement…

11-01-2007 05:38PM

#1

information

Closed Accounts Posts: 362 ✭✭

Join Date: August 2006

Posts: 325

If I only have overheads
and
start off with no assets
and
and purchase no assets
and
introduce no funding into the company

Should
My yearly Net PL Figure
=
My yearly Net CF Figure

I know in practise its not possible becasue you would be spending money you don't have,
but just to check my figures is the above statement correct?
Thanks

0

Comments

#2 12-01-2007 12:10AM

Kinetic^

Closed Accounts Posts: 13,224 ✭✭✭✭

Join Date: May 2005

Posts: 12349

Looks good but I know I'd be guessing myself after writing it

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#3 12-01-2007 12:13PM

smcgiff

Closed Accounts Posts: 5,943 ✭✭✭

Join Date: January 2007

Posts: 5788

Hi,

By CF do you mean Cashflow?

If so then if you only have overheads the loss you make will not necessarily = Cashflow. This is due to the wonders of credit.

Say your ESB invoice is dated the 31-12-06 on credit for €100 and this was your only transaction in 2006.

You'd have a loss of €100, but there would be no cashflow (in or out) in 2006.

0