Can a Company Have a Negative Cash Flow from Operating

question 108

Essay

Can a company have a negative cash flow from operating activities for the year on the statement of cash flows but still have a net income on the income statement? Explain.

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Definitions:

Membrane

A thin layer of tissue or material that acts as a selective barrier, controlling the passage of substances in and out of cells or organelles.

Fontanels

Soft spots on a baby's skull where the bones have not yet fused, allowing for growth of the brain and skull during infancy.

Ossified

The process by which tissue is transformed into bone or a bony substance.

Epiphyseal Plates

Growth plates located at the ends of long bones where new bone growth occurs.