– How can my business show a profit yet there’s no additional cash?

Question

– How can my business show a profit yet there’s no additional cash?

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Answer 1

I meant to add some additional text to the question. I’m trying to understand cash flow stemming from my title of the post. I’m showing a profit for last two quarters, cash flow fluctuates a bit, but general seems stable. Considering there is a profit, but no real significance in cash in the bank, does this mean I have negative cash flow or positive? I’m this scenario should I spend money to reduce it?