Archive for June, 2007
why can negative cash flow from operations mean bankruptcy?
alex l asked:
Operating activities result in net income or net loss and either increase or decrease cash .The income statement tells whether the company is profitable .The cash-flow statement reports whether operations increased cash .operating activities are most important , and cash flow from operations should always be positive .Negative cash flow from operations can mean bankruptcy.
Maegan Harbinson
Operating activities result in net income or net loss and either increase or decrease cash .The income statement tells whether the company is profitable .The cash-flow statement reports whether operations increased cash .operating activities are most important , and cash flow from operations should always be positive .Negative cash flow from operations can mean bankruptcy.
Maegan Harbinson
