Question: Can cash flow from operating activities be positive if profit before tax is negative? Can operating cash flow be negative if profit before tax is

Can cash flow from operating activities be positive if profit before tax is negative? Can operating cash flow be negative if profit before tax is positive? Give examples.

Step by Step Solution

★★★★★

3.41 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Yes both of these statements are true Since cash flow from operations is determined by cash inflows ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1351-B-A-A-A-M(16).docx

120 KBs Word File

Students Have Also Explored These Related Advanced Accounting Questions!

Kelly Tough, president of Tu-Rock Industries Inc., believes that reporting operating cash flow per share on the income statement would be a useful addition to the companys just completed financial...

Ignoring all other factors, will a company that is generating negative cash flows from operating activities be a good or bad investment? When evaluating a company, you notice the following on its...

Caterpillar is a U.S.-based manufacturer of construction machinery and heavy-duty engines. Caterpillars consolidated comparative statement of cash flows for 2002, 2003, and 2004 follows. All amounts...

Can Cash Flow from Operating Activities be positive if profit before tax is negative? Can cash flow be negative if profit before tax is positive? Give examples.

To Goodwill Written off 8.000 To Proposed Dividend 10,000 To Provision of TAX 15,000 To Net Profit 24,000 97,000 97,000 Statement Showing Cash Flow from Operating Activities Particulars Rs. Net...

Discussion Question One: This week in our text and video lectures, we are starting to study how companies can get and record funding. There are three ways: from Liabilities, from issuing Stocks, or...

Questions: Please solve above questions as much as you can using Financial Statements given below. I will up-vote you life-time. 3. Environment Factors: a. Macro-economic Factors of the country:...

A mature company generally has O negative cash flow from operating activities and positive financing cash flow. positive cash flow from operating activities and positive financing cash flow. O...

Fill in the blank. 2019 2020 2021 Cash flow from operating activities 272640000 (45805000) 40950000 Interest paid(After tax) Capital expenditures Free cash flow CROCODILE CARNENTS ANNUAL REPORT 2020...

Whats the fixed charges in these statements ? SAHARA INTERNATIONAL PETROCHEMICAL COMPANY (FORMERLY SAUDI INTERNATIONAL PETROCHEMICAL COMPANY) A CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31...

The Jacob Company needs to acquire a new lift truck for transporting its final product to the warehouse. One alternative is to purchase the truck for $45,000, which will be financed by the bank at an...

1. Identify the forces pushing for change and the forces restraining the change effort in this case. 2. Was Jim Leon successful at bringing about change? Why or why not? 3. What should Jim Leon do...

7 Give an example of a cost which may not be relevant in the short term, but could become relevant in a long-term decision.

6.5 Suppose that an individual consumes three goods, Xu X2, and X3, and that X2 and X3 are similar commodities (i.e., cheap and expensive restaurant meals) with P2 = KP3 where K

In a large corporation what are the two distinct groups that report to the chief financial officer? Which group is the focus of corporate finance?

What goal should always motivate the actions of a firms financial manager?

The Filter criteria we used in lab eliminates molecules containing saponin derivatives. What are saponins and why are they undesirable in a drug?

_MAT2215_OL We Never : 12705PM = Test: My Lab Test 2 Question 7 This Test: 10 pts possible An incomplete contingency table is provided. Use this table to complete the following a. Fill in the missing...

please show work a. Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's total-debt-to-total-capital ratio was 45.0%. The...