Question

Kaleidoscope Technology manufactures computer products. The company suffered a loss of nearly $450 million in 2009. However, the company’s statement of cash flows for that year reported a net cash flow from operating activities of approximately $20 million.
Required:
(a) How could this company incur a large loss in a given year but still have a positive cash flow from operating activities in 2009?
(b) Do you think the loss or the positive cash flow is more important to current and future investors? Explain your answer.


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  • CreatedMarch 27, 2015
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