How can a company have a profit but not have cash?

 

When selling assets or he company   sold the products or delivering  the services   on account more than liablites 2-  assets revaluation  have accrued revenues

 

Profit and cash-flow are related financial measurements in accounting but they are not directly linked. Profit is a measure of an company's ongoing sustainability while cash-flow is a measure of the company's ability to pay its bills as they become due. See, the cash-flow for a particular period is the closing cash balance arrived at after deducting the cash-out (paid) from the cash-in (received). Profit on the other hand, is the amount that remains after deducting from the revenue earned, the expenses incurred in earning that revenue. 

Not necessary as the cash would have been invested in Fixed Assets which would yield profit in future.  If a business grows with profit , cash will not  a have much issue.

A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company's cash receipts and cash disbursements. In other words, there is a difference between revenues and receipts. There is also a difference between expenses and expenditures.

 

Thanks for invitation,

When the organization is selling on credit and the receivables are not collected or not due yet.

There is a difference between revenues and receipts. There is also a difference between expenses and expenditures.A company can have a profit but not have cash because profit is computed using revenues and expenses, which are different from the company's cash receipts and cash disbursements. 

In the following situations a profitable company might not have cash.

• Having sales on credit but most expenses are in cash.
• Investment made in cash.
• Liability settlement in cash etc.

1-  when

1- the company   sold the products or delivering  the services   on account

2-  assets  revaluation

 

 

Thank you for the invitation, liquidity or cash is the result of revenue operations may be regular or Received actually, but there revenues are recorded only has not been collected yet and this affects the cash available to the company, or that the company's obligations rotating frequent dramatically, and also the profit inflating stocks last duration value which is deducted from the direct cost of operations resulting in a gain of placebo or notebook profit

Thank you for your kindness invitation.

I agree with all previous answers.

Regards

when the majority of the sales be on credit