Question: Convert profits into cash flows (and vice versa). Explain the importance of understanding the difference between profit and cash. Explain how to evaluate a company's

Convert profits into cash flows (and vice versa). Explain the importance of understanding the difference between profit and cash.

Explain how to evaluate a company's cash position by calculating appropriate liquidity ratios.

Explain how to determine a company's financial structure by calculating appropriate gearing ratios.

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Converting profits into cash flows and vice versa involves understanding the differences between these two financial metrics Profit is a measure of a companys earnings calculated by deducting expenses ... View full answer

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