net income and cash flow from operations


O

omarfdawood

Dear Experts,
The difference between net income and cash flow from operations is as
follows , from 2003 till 2007.
(10,981,524)
45,405,434
(4,379,713)
1,891,039
(17,726,746)
May I know what does this mean?
Many thanks
 
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T

Troy Steadman

Dear Experts,
The difference between net income and cash flow from operations is as
follows , from 2003 till 2007.
(10,981,524)
45,405,434
(4,379,713)
1,891,039
(17,726,746)
May I know what does this mean?
Many thanks
Cash Flow differs from Net Income because:

1) Cash Flow includes VAT

2) Income and Expenditure are "matched" so that they always occur at
the same moment. Cash flow happens whenever it happens.

If I sell you a tractor this year and you pay for it next year, there
is potential for the sort of differencea that are occuring in
your...erm...homeowrk?
 

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