Ah, in my books at the firm, we start with the net profit. Then we add back things like depreciation, and adjust for the changes in working capital—inventory, debtors, creditors. It is like untangling threads on the loom to see the true picture. For me, the real learning came from seeing our own small farm's accounts; our "profit" from selling beans wasn't real cash if Uncle still hadn't paid us from last month.
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