Question: Why do we say that as a general rule, operating cash flow should be positive? Provide a simple example that demonstrates that operating cash flow

Why do we say that as a general rule, operating cash flow should be positive? Provide a simple example that demonstrates that operating cash flow can be negative during periods of strong growth, startup periods and in the event of strong seasonal fluctuations.

Step by Step Solution

3.45 Rating (145 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Principles Corporate Finance Questions!