Kaleidoscope Technology manufactures computer products The company suffered a loss of nearly $450 million in 2009 However, the companys statement of cash ows for that year reported a net cash ow from operating activities of approximately $20 million Required (a) How could this company incur a large...

a The larger the noncash items on the income statement the larger the gap between ...

Kaleidoscope Technology manufactures computer products. The company suffered a loss of nearly $450 million in 2009. However,

Question:

Kaleidoscope Technology manufactures computer products. The company suffered a loss of nearly $450 million in 2009. However, the company’s statement of cash ﬂows for that year reported a net cash ﬂow from operating activities of approximately $20 million.
Required:
(a) How could this company incur a large loss in a given year but still have a positive cash ﬂow from operating activities in 2009?
(b) Do you think the loss or the positive cash ﬂow is more important to current and future investors? Explain your answer.