Cashflow and Profit

I created this (facilitated by AI) after reading the autobiography of Phil Knight, founder of Nike, who said that despite generating $1.3m in profitable revenue, their cashflow at the time was poor (‘living off the float’) and they were constantly approaching the bank for more credit.

This activity helps students to identify why profitable products do not always result in positive cashflow or net balances.

This is useful when you have looked at Income Statement / SOCI to combine and reinforce knowledge and understanding.