Why you have net income although you have cash decrease in balance sheet?

Answer 1

I can think at least several possible answers off the top of my head you already had an enough excess to cover the decrease; you cut expenses, you added credit options to for consumers to pay for goods or services. you paid off some large capital expenses incurred for start-up or (infrequent recurrent expenses) , a grant that allows release of funds based upon reaching certain milestones, investments realize a profit some business entities (this is all that kept some afloat during the current recession or economic turndown); an increase in in-kind donations , gifts our awards, improved purchasing practices, eliminating goods or services that lost money or were marginally profitable, utilizing these savings and reallocating these resources to expand in areas that yield quicker and/or have a larger profit margin, if you are in a company where cost centers are used to separate monies to compare how one service is performing ( for example to split the cost of office space utilites and supplies between several different services or departments review the allocations REVIEW to be sure they are accurate and if need be make the changed I did this moving all my staff out of a facility shared with another program and moved my staff in to some of my existing space within the corporation and saved my program @180,000 a year(cost shiftiing}It is a good practice,on a regular basis to review how your expenses and revenue are being allocated anyway especially if your program//dept. etc. is growing quickly. I took over management of a service one time, where the allocations for space/utilities,etc. had not been updated in 10 years. It's hard to manage without valid information. These days we are expected to do more and more with less and less. It's called "working smarter"