Kaleidoscope Technology manufactures computer products. The company suffered a loss of nearly $450 million in 2009. However, the companys statement of cash flow for the year reported a net cash flow from operating activities of approximately $20 million.

How could this company incur a large loss in a given year but still have positive cash flow from operating activities in 2009?

Do you think the loss or the positive cash flow is more important to current and future investors? Explain your answer.