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what is the difference between operating cash flow and earnings? if you could give a detailed answer please. and maybe an example or two. Thanks.
Answer -
ocf; all the money coming in and flowing throughout the company;
earnings, what you keep.
does that help?
NO when you have positive cash flow in other words you are making money what is the diffrerence between that and the standard earnings?
Answer -
i hate to confuse you, but it is a confusing situation.
in RE and in biz, the answers are different
cash flow in biz is all the money coming into the firm
and it winds up being earnings after all debts are paid.
in RE it is net cash flow that is kept.
does that help?
bassically my problem is when i look at afinancial report the cash provided from operations is diff. than net earnings im just wondering the difference?
Answer -
net earings is what you have at the end of the year
cash from opeations is all the cash you get each day.
or SALES and the way that cash winds its way throughout
the company [salaries, cost of goods sold, etc]
rent,etc
When researching a stock i look at the balance sheet (income statement) and the cash that that they get is diff than the earnings why whats the diff.? is there more things included in earnings that is not part of cash or the other way around im a little confused? (im not talking about regular small companies im talking about public ones. thank you for your patience!
Answer be it public or private, it is not important.
i will make this simplier.
u have a paycheck. THAT is the cash flow.
it goes to the federal government, the state government
in taxes, to social security, perhaps to insurance
or to IRA accounts you have and
finally, you have net pay, the amount of your check that
you put in the bank.
your net pay is the same as retained earnings.
the cash flow is the same as your hourly or monthly
wage earned.
if u wish more questions answered, please start a new
question.
