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5:00One Sale, Three Statements
Follow a single £100 sale as it ripples through the P&L, balance sheet, and cash flow, and see why they can disagree.
One sale touches all three financial statements at once, but each tells a different part of the story. Say you sell goods for £100 on 30-day credit, and those goods cost you £60 to buy. Here is what each statement records, and why they refuse to agree until the customer actually pays.
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