Profit vs Cash: A Working Capital Crunch
A short wholesale distribution decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.
Wholesale distribution · profit versus cash
Your P&L shows $80,000 of profit last quarter, but your bank balance fell. All of your customers pay on 60-day terms and sales grew 40%.
| Given fact | Scenario data |
|---|---|
| Last-quarter reported profit | $80,000 |
| Customer payment terms | 60 days |
| Sales growth | 40% |
| Bank balance | Fell |