[ucaetano]

Accounting is complicated. For example, let's say you buy a box for $50, pay it right away, then sell the box and deliver it on December for $100, but the buyer only pays you in January.

Then you need to publish your results for this year. How do you do it?

P&L statement:

Revenue: $100

Costs: $50

Profit: $50

Cash flow statement:

Cash from sales: $0

Cash paid to suppliers: $50

Net cash flow: -$50

So you had a negative cash flow, but was profitable.