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The Arizona Corporation reported positive net income but negative cash flow from operations. Further, despite the negative cash flow from operations, the company continued to
The Arizona Corporation reported positive net income but negative cash flow from operations. Further, despite the negative cash flow from operations, the company continued to pay its regular dividend on its common shares. Discuss why it is possible for a company to report positive net income when the cash flow from operations is negative. Do you agree with the firms strategy of maintaining its regular dividend? Why or why not?
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