A firm operated at a net loss for the current year, but cash flow from operations was

Question:

A firm operated at a net loss for the current year, but cash flow from operations was positive. How can this happen?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

See More Books

Question Posted: Dec 03, 2011 04:54 AM

See More Questions

A firm operated at 80% of capacity for the past year, during which fixed costs were $210,000, variable costs were 65% of sales, and sales were $1,000,000. Operating profit was:
A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating profit was
Cash flow from operations was $700,000 for 2011 and $863,000 for 2012. Does this suggest that management of Great Oaks Furniture has manipulated earnings upward in these years? The following...
The voltage held by a voltage regulator follows a normal random variable with a mean that equals 200 volts and a standard deviation that equals 5 volts. A regulator meets the specifications if the...
What kind of product is Petnet's Smart feeder? How should this type of product be marketed?
How could higher electrical prices in peak demand periods and lower prices in low demand periods lower overall production costs, even if it did not change total electrical usage over the entire cycle?
How Are Life and Work Affected by Changes in Technology? (pp. 382385)
To ensure highway safety and protect driver health, Congress charged federal agencies with regulating the hours of service of commercial motor vehicle operators. Between 1940 and 2003, the...
(Appendix 106) A favourable labour efficiency variance would result in a credit balance in the labour efficiency variance account. True or False True False
Chris, a local baker, is interested in opening her very own Cupcake Cafebut to make it worth her while she needs to earn at least $35,000 per year in profit from all segments. She's lucked out and...
One writer stated. Depreciation expense is a firms chief source of cash for growth. A reader criticized this statement by replying. The fact remains that if companies had elected, in any year, to...
The disposal of equipment for an amount of cash greater than the carrying value of the equipment results in a cash receipt equal to the carrying value of the equipment plus the gain on the disposal,...
Have you (or someone you know) ever experienced significant periods of sleep deprivation because of simple insomnia, high levels of stress, or as a side effect from a medication? What were the...
Pink Jeep Tours offers off-road tours to individuals and groups visiting the Southwestern U.S. hotspots of Sedona, Arizona, and Las Vegas, Nevada. Take a tour of the companys Web site at...
The following are unrelated accounting practices: 1. Pine Company purchased a new $\$ 30$ snow shovel that is expected to last six years. The shovel is used to clear the firm's front steps during...
Identify whether the following statements are true or false. 1. One argument for IFRS is that there is less globalization in the world. 2. IFRS is accepted as GAAP in every country of the world. 3....
You will need isometric dot paper for this question. Part of a pattern using four rhombuses is drawn on isometric dot paper below. By drawing two more rhombuses, complete the pattern so that it has a...
Fred Flores operates a golf driving range. For each of the following financial items related to his business, indicate the financial statement (or statements) in which the item would be reported:...
Develop the network for planning and construction of the new hospital at Arnold Palmer. lop5
What is the difference between the straight-line method of depreciation and the written down value method? Which method is more appropriate for reporting earnings?
What do the letters in the acronym IUPAC stand for?
The annual report provides financial information in a variety of formats, including the following. Management discussion and analysis (MD&A) Financial statements Notes to the financial statements...
The annual report provides financial information in a variety of formats, including the following. Management discussion and analysis (MD&A) Financial statements Notes to the financial statements...
Presented below are five independent situations. (a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange...
Just work out the assignment on your own sheet, you dont need the excel worksheet. Classic Coffee Company Best friends, Nathan and Cody, decided to start their own business which would bring great...
Financial information related to the proprietorship of Ebony Interiors for February and March 2019 is as follows: February 29, 2019 March 31, 2019 Accounts payable $310,000 $400,000 Accounts...
(b) The directors of Maureen Company are considering two mutually exclusive investment projects. Both projects concern the purchase of a new plant. The following data are available for each project...

A firm operated at a net loss for the current year, but cash flow from operations was

Question:

Step by Step Answer:

The firm might be capital intensive and therefore subtracted substantial ...View the full answer

Financial Accounting an introduction to concepts, methods and uses

Students also viewed these Managerial Accounting questions