On its income statement for a recent year, Northwest Airlines Corporation reported a net loss of $862

Question:

On its income statement for a recent year, Northwest Airlines Corporation reported a net loss of $862 million from operations. On its statement of cash flows, it reported $271 million of cash flows from operating activities.

Explain this apparent contradiction between the loss and the positive cash flows.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...