Blaire and Mark married last year and immediately opened a small computer business. Blaire is responsible for managing the business while Mark is responsible for the accounting. At the end of each month, Mark tells Blaire that the business is earning a profit. Blaire, however, is very frustrated and skeptical. She calls the bank periodically and much to her amazement; the business has no more money in the checking account than it did on the opening day. Blaire and Mark heard that you were taking an accounting course at a local university and have come to you, a friend, for help. 

Write a memo to the young entrepreneurs explaining how it is indeed possible to have a net income and not have an increase in cash.

Answer rating: 100% (QA)

Subject Understanding Net Income and Cash Flow in Your Business Dear Blaire and Mark I hope this memo finds you both well I understand that you have been facing some confusion and frustration regardin... View the full answer