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Yes, great revenue and profitability can influence the amount of cash a company has on hand, as higher earnings typically lead to increased cash flow. However, factors such as expenses, investments, debt obligations, and working capital needs also play a crucial role in determining cash reserves. A profitable company might still face cash flow challenges if its earnings are tied up in receivables or if it invests heavily in growth. Ultimately, while strong revenue and profitability are beneficial, they are not the sole determinants of cash availability.

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1d ago

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Cost of revenue is the amount spent to sell a company's products.


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The revenue is the amount of money a company actually recieves. It is the the number before costs are subtracted.


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This is what it says in my Economics book; "A company's maximum revenue is defined as the amount of money the company receives by selling its goods." Revenue is any type of income that is coming into the company for example Investment income That's the best answer i could find ^_^


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What is a total revenue?

This is what it says in my Economics book; "A company's maximum revenue is defined as the amount of money the company receives by selling its goods." Revenue is any type of income that is coming into the company for example Investment income That's the best answer i could find ^_^


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Revenue is the total amount of money a company earns from selling its products or services, while profit is the amount of money left over after subtracting all expenses from the revenue. Revenue is the top line of a company's financial statement, while profit is the bottom line. Profit is a key indicator of a company's financial health and performance, as it shows how efficiently the company is operating and generating returns for its shareholders. A company can have high revenue but low profit if its expenses are too high, which can indicate inefficiencies in its operations. Ultimately, both revenue and profit are important metrics for evaluating a company's financial performance and sustainability.


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