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Is it possible for a company to have negative net income but at the same time...

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Finance

Is it possible for a company to have negative net income but atthe same time a positive cash flow?

Please explain why in detail and provide an example.

Answer & Explanation Solved by verified expert
4.5 Ratings (694 Votes)
Yes it is possible for a company to have negative net income but at the same time a positive cash flow To answer this question we need to see how the cash flow is calculated in a cash flow statement A cash flow statement will have three parts that are cash flow from operations cash flow from investing and cash flow from financing Cash flow from operations Net income Add back    See Answer
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Is it possible for a company to have negative net income but atthe same time a positive cash flow?Please explain why in detail and provide an example.

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