Question
1. Give one reason that can cause a firm to report negative cash flow in the same period that it reports a positive net income?
1. Give one reason that can cause a firm to report negative cash flow in the same period that it reports a positive net income?
2. Give one reason that can cause a firm to report positive cash flow in the same period that it reports a negative net income?
3. Finally, give an example of how cash flow is managed in your organization or an example of how a firm can increase cash flow when sales volume is decreasing.
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1 One Reason is the revenue is recorded on accrual basis and not on cash basis hence it will ...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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