Profit, noncash charges and an uncollected sale
A simplified business report shows profit of CHF 30 000 after depreciation of CHF 4 000. Customer receivables increased by CHF 6 000 during the period. The exercise expressly excludes every other difference between profit and the modeled operating cash flow. One reviewer calls profit the bank increase; another subtracts depreciation a second time and adds the receivables increase as though it were a receipt. The task is to explain the direction of each adjustment and the meaning of the result. This is an intentionally bounded indirect-reconciliation model, not a complete set of actual financial statements or a claim that inventory, suppliers, financing and investing never matter in a real cash-flow analysis.
1. Compute the stated model operating cash flow.
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Start with CHF30 000 profit, add back CHF4 000 noncash depreciation and subtract the CHF6 000 receivables increase. The model result is CHF28 000.
2. Why do the adjustments have these signs?
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Depreciation reduced profit without a current matching payment; increased receivables represent recognized amounts not yet collected under the model. Real cash-flow work would also analyze all other relevant movements instead of assuming them absent.