If a company reports a net loss for the year, is it still possible that cash could actually increase during the year? Explain your answer
Yes, it is possible to report a net loss and still experience a net increase in cash. First, a company could report large noncash charges against net income, such as depreciation and various types of losses.
Thus, it is possible that net cash provided by operating activities is positive even though a net loss is reported. Second, the net loss deals only with operating activities. It is possible that a net cash inflow was provided by either investing or financing activities, or both.
You might also like to view...
Answer the following statements true (T) or false (F)
1. The strategic-management process is often touched off by a crisis. 2. The first three steps in the strategic-management process are establishing the mission and the values statement, assessing the current reality, and formulating the grand strategy. 3. Frank is interested in rewriting the vision statement for his antique shops, and he wants his employees and his business to grow. Therefore, the vision for Frank's stores should be positive and inspiring, and it should stretch the company and his employees to achieve objectives that they believe are not possible. 4. When Pablo and his partner wrote the mission statement for their fitness center, P&P Fitness, it did not include descriptions of their customers or the products and services they offer, because those descriptions belong in a vision statement.
Which of the following would be included in cash flows from operating activities?
A. Cash dividends paid to stockholders. B. Cash received from customers. C. Cash received from an issuance of bonds. D. Cash used for purchases of equipment.
The only advantage of visual aids is that they improve the comprehension and retention of ideas
Indicate whether the statement is true or false
The Pie Hole, a local pizza restaurant, has a limited budget but wants to run an ad in the local daily. The business accepted a run-of-paper (ROP) advertising rate to save some money. This means that the owner of the Pie Hole
A. may find its ad anywhere in the newspaper, wherever space permits. B. can ensure a choice position in the newspaper by paying the higher run-of-paper (ROP) rate. C. is testing the pull rate of two identical size ads with different content for the same product. D. will not require the newspaper to rerun its ad if production quality is less than desirable. E. will be penalized if it decides to pull its ad before the closing date.