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A flow thru profit is an extra sale above budget

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13y ago

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What is meant by flow through on a P and L?

Flow through on a Profit and Loss (P&L) statement refers to the extent to which an increase in revenue translates into an increase in operating profit or net income. It highlights the efficiency of a business in converting sales growth into profit, often expressed as a percentage. A higher flow-through rate indicates that a larger portion of incremental revenue contributes to the bottom line, reflecting effective cost management and operational leverage. Conversely, low flow-through suggests that increased revenues are not effectively converted into profit, potentially due to rising costs or inefficiencies.


Is profit the same as cash flow?

yh


Formula for average annual profit?

Total Cash Flow / 5years = Average Annual profit


Is it possible for a company to have a profit and a negative cash flow?

No


How you can convert the profit as per profit and loss into cash flow items?

bond merva ja k


What is the key to winning in the cash flow business?

The key to winning in the cash flow business is to watch that you do not overspend and that on average each transaction has a profit. The occasional loss is OK, as long as in the long run you profit.


What is it called when a business makes money?

It's called a positive cash flow or profit.(Costs + Liabilities) - Sales = Profit/Deficit


What effect does depreciation have on the cash flow associated with an investment in a fixed asset?

Depreciation is a non cash flow item which reduces the profit figure only so in cash flow statemnet we will add this figure to operating profit then we will get accurate cash flows from operating activities.


What constitute an financial statement?

balance sheet profit&loss account cash flow statement fund flow statement


What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?

What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?


What is the difference between cash flow and cash?

Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.


What are audited financial statements?

balance sheet profit and loss acount trail balance cash flow and funds flow ....are the main