Essay from the year 2017 in the subject Business economics – Investment and Finance, grade: 5.50, Anglia Ruskin University, language: English, abstract: This report addresses a paradox: high profit and at the same time significant debts for the company. Seen from this perspective, the profit regarded as the difference between the total revenue and the total costs and the cash flow seen as the incomings and outgoing of cash of a particular company is somehow different. One of the reasons for that is the usage of the accounting conventions of the accruals; however the issues relating to the working capital management are also of importance. In this field of development, the way changes in the working capital affect cash flow will be analyzed and important recommendations will be made.
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