If operating cash flow is negative, then The firm is bankrupt. The firm can pay no dividends. Cash flow to creditors (bondholders) must be negative. Cash flow to stockholders must be positive Cash flow from assets may be positive. Non-cash items are: The credit sales of a firm. The accounts payable of a firm. O Expenses charged against revenues that do not directly affect cash flow O Expenses incurred for the purchase of intangible fixed assets. O All accounts on the statement of financial position other than cash on hand