USA I am dumbfounded by these questions:

[Boomy]

Okay, first of all:

Why might not profit be equal to changes in cash balances?
I appreciate there are some things that do not appear on profit and loss accounts but I cant for the life of my figure out what these would be and for what other reasons would profit not equal cash balances???

How would the tripling of debtors brought about be the changing of payment schedules affect profit and cash flow?
I'm being a dunce here, I realise but would it just mean that money would only enter into the company later or....?

If there is £60000 at the end of the balance sheet reason would dictate that if I owned 1% of thoes shares they would be worth £600, yes? What reason would there be for this not to be the case?
for this bit I understand everything up until the second sentence. Oh god what reasons would there be?? Human error?? Depreciation??


Any help would be hugely, hugely appreciated.

 

[jfuertes]

The answer for the first question is that accountancy works on the accrual basis, you don´t recognize the income when you receive the money, income is recognize when transactions occur, so you can sell inventory, recognize the sell and have not receive the money yet. Incomes will be more than cash.
Well, you are going to receive less cash, and have less money product of the operating activities, sells for example, in the first question i told you that accountacy works in accrual basos, but the statements of cash flows works in cash basis, so, if you have more debtors(uncollected sells), you have less money product operating activities.

 

[mike99]

With regards to the last one, the only reason I can think of (assuming "the end of the balance sheet" refers to your net asset value) is that the value of a share need not be the book value per share (total equity/no. of shares). Valuing shares can be done with various models. The simplest answer would be that the value of the share is also dependent on the market value of the share, and the share could be over or underpriced, and not necessarily equal to the $600.