Question: 1) Explain the following statement: While the balance sheet can be thought of as a snapshot of the firms financial position at a point in

1) Explain the following statement: While the balance sheet can be thought of as a snapshot of the firms financial position at a point in time, the income statement reports on operations over a period of time.

2) Differentiate between accounting profit and net cash flow. Why do those two numbers differ?

3) Would it be possible for a company to report negative free cash flow and still be highly valued by investors; that is, could a negative free cash flow ever be a good thing in the eyes of investors?

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