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22 April, 06:29

It is possible for a hospitality operation to be operating at a profit during any given month but to simultaneously have insufficient cash flow during that same month.

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  1. 22 April, 07:45
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    Answer: Yes

    Explanation:

    Cash flow is the net amount of cash and cash-equivalents being transacted in and out of an organisation in a given period.

    An organisation is profitable when its net revenues exceed its total costs.

    It is possible for a hospitality operation to be operating at a profit during any given month to have a positive profit and still have a negative cash flow.

    Firms make credit operations but might not received cash just yet, which would show that no cash came in. Due to this, it makes it possible for an organisation to have a positive profit and a negative cash flow.
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