Earnings and cash flow. Businesses need both. Many Foster students know earnings and cash are different from one another. But why are they different? And why do we need both?
These are the questions Principal Lecturer Lance Young focused on during the fifth Lunch & Learn webinars with PACCAR-Award winners. Young explained how and why earnings differ from cash flow and how both relate to profits, value, and cash balances. To help bring some context to these timeless issues, Young used his schematic diagrams to help with his explanation.