Statement of Cash Flow Question

quik_nash · #1 Feb 15, 2006, 01:07 PM

Give one reason why, in a 1 year period, a company may report a loss on the Income Statement, but report a positive cash flow in their Statement of Cash Flow.

LeeAnnMemphis · Feb 15, 2006, 03:07 PM

Perhaps Depreciation expense?
Depreciation expense is relfected on the income statement as an expense, but it is not an expense they actually paid any money for in that year. Therefore, it would not affect the cash flow worksheet.

CaptainForest · Feb 15, 2006, 08:14 PM

Net Loss on Income Statement but a positive Cash Flow.

A loan. The interest expense takes you into a loss, but the loan provides a positive cash flow to your company.



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