Ask Experts Questions for FREE Help !
Ask
    ecroft's Avatar
    ecroft Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 23, 2006, 06:06 PM
    Cash Flow from operations
    Is it possible for a company to have a positive cash flow from operations in the same year that it has a net loss or to have a negative cash flow from operations in the same year that it has a profit?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Aug 24, 2006, 04:28 PM
    Yes, it is possible.
    Jamminnie's Avatar
    Jamminnie Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Sep 3, 2008, 10:38 AM
    Is it possible for a company to have a positive cash flow in the same year it has a net lost?
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
    		  
    #4

    Sep 3, 2008, 12:49 PM
    Yes, there are three componenets to the cash flow, remember.

    1. Operations (which takes into account Net Income/Loss)
    2. Investing
    3. Financing

    A company with high net losses yet a positive cash flow are likely financed completely and are a tell-all sign to investors that this company is either in the early stages of development or has a very weak future.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cash flow statements [ 1 Answers ]

How banks determine a client's requirements based on their cash flow forecast

Cash Flow [ 1 Answers ]

If a company has negative cash flow, but its balance sheet shows increased cash, what caused this?

Statement of cash flow [ 2 Answers ]

If its stated that " $40,000 stock dividend was declared and issued during the year", does it mean the company already paid the dividend? Statement of cash flow is too complicated :confused:

Cash flow statement [ 1 Answers ]

I am using the indirect method for a cash flow statement. In the comparative balance sheet I have bonds payable 2003 $66,000 & 2004 $48,750 (decrease 17,250) The bonds payable were retired for $17,250. Do I show as an increase under financing activities?

View more questions Search