Profit Yr 1 1 Yr 2 3 (oh dear, we were a leetle optimistic with the collectibilty of our sales) Yr4 0 (woopsie , we overstated last year so corrected it this year) Yr5 2 Total 6
Cashflow Yr 1 2 Yr 2 2 (oh but we didn't pay anyone and we hounded our debtors) Yr4 0 (had to pay up and there was nothing left to collect) Yr5 2 Total 6
In the VERY long run they are the same. Shorter term they are not. Profit lends itself to manipulation, cash-flow does as well (delay paying creditors and get paid by customers in advance).
I reckon that in addition to a cash-flow report there should be a cash-flow report adjusted to take account of debtors and creditors (to keep the cash-flow report "honest".
