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You have stated several reasons as to why a company could have negative cash flows. Many...

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Finance

You have stated several reasons as to why a company could havenegative cash flows. Many start-up companies experienced negativecash flows during the first few years of their operations. Wouldyou invest in a start up company if it has negative cash flows forthe first three years of its operations, and in the 4th year thecompany is still expecting a negative cash flow?

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Cash Flow Statement has 3 main components 1 Cash Flow from Investing Activities 2 Cash Flow from operating activities 3 Cash flow from financing Activities Here we have to discuss about cash flows from financing activities Cash Flow Statement is a Financial Statement that summarizes the amount of cash cash    See Answer
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You have stated several reasons as to why a company could havenegative cash flows. Many start-up companies experienced negativecash flows during the first few years of their operations. Wouldyou invest in a start up company if it has negative cash flows forthe first three years of its operations, and in the 4th year thecompany is still expecting a negative cash flow?

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