cash-flow-diagnostic

Profit and cash diverge when revenue is booked but not collected, inventory ties up cash, or debt principal is repaid below the profit line. This Skill builds a net-income to operating-cash bridge that quantifies exactly how much each driver consumed.

Start with net income, add back depreciation, subtract increases in receivables, inventory, and prepaid expenses, and add increases in payables, accrued expenses, and unearned revenue. The result is operating cash flow under the indirect method.

You need two consecutive periods of income statement and balance sheet data, plus depreciation, capex, debt principal repaid, and owner withdrawals for the period. Beginning and ending cash balances are used to verify the bridge reconciles.

Do not use it when the business is unprofitable, since that is an earnings problem requiring margin analysis first. For runway questions like how long until cash runs out, use a cash runway monitor instead.

The Skill reports the gap rather than inferring a figure to force reconciliation. A gap indicates a mis-bucketed or omitted cash item, and the recommendation is to re-run financial statement analysis or consult an accountant.

No. Analysis, bridge construction, and drafting collection reminders proceed automatically, but sending customer communications, changing payment terms, or any borrowing and money movement always requires founder approval.