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Where's the money?
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<blockquote data-quote="ManyHorses" data-source="post: 59260" data-attributes="member: 1016"><p>It's common for people to confuse making profits/losses with 'cashflow'... and that's what I think has been happening in this discussion.</p><p></p><p>Think of 'cashflow' as being the environment or 'bigger picture' you're operating in, and making profits and taking losses as a series 'smaller pictures' taking place within that timeframe. We have all kinds of profits and losses that go into our operations but as long as we operate with a 'positive cashflow' we can sustain the ups and downs of profits and losses.</p><p></p><p>Noticing how folks are 'accounting' for things in this discussion is making for the 'apples and oranges' effect on the wide range of profits and losses being hashed over. Also having an effect would be the method of accounting - cash vs accrual methods.</p><p></p><p>Anyway... just take it all with a block of salt because regardless of how profitable producers think they are, they can't survive very long in a negative cashflow environment.</p><p></p><p>Just my two cents worth... Richard</p></blockquote><p></p>
[QUOTE="ManyHorses, post: 59260, member: 1016"] It's common for people to confuse making profits/losses with 'cashflow'... and that's what I think has been happening in this discussion. Think of 'cashflow' as being the environment or 'bigger picture' you're operating in, and making profits and taking losses as a series 'smaller pictures' taking place within that timeframe. We have all kinds of profits and losses that go into our operations but as long as we operate with a 'positive cashflow' we can sustain the ups and downs of profits and losses. Noticing how folks are 'accounting' for things in this discussion is making for the 'apples and oranges' effect on the wide range of profits and losses being hashed over. Also having an effect would be the method of accounting - cash vs accrual methods. Anyway... just take it all with a block of salt because regardless of how profitable producers think they are, they can't survive very long in a negative cashflow environment. Just my two cents worth... Richard [/QUOTE]
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