Explain the difference between Net Income and Cash flow from Operations.Why is it important for a business

Fantastic news! We've Found the answer you've been seeking!

Question:

Explain the difference between Net Income and Cash flow from Operations.Why is it important for a business to consistently generate a positive free cash flow.?

Related Book For answer-question

Understanding financial statements

ISBN: 978-0136086246

9th Edition

Authors: Lyn M. Fraser, Aileen Ormiston

See More Books

Posted Date: Mar 24, 2024 11:40 PM

See More Questions

The following cash flows were reported by Techno Inc. in 2009 and 2008. (a) Explain the difference between net income and cash flow from operating activities for Techno in 2009. (b) Analyze Techno...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Predictive text entry systems are familiar on touch screens and mobile phones. This question asks you to consider how the same principles might be used in a programming editor for creating Java code....
The word culture is used in many ways, such as when people talk about national culture, organisational culture, political culture or youth culture. In which ways do the meanings of culture differ?
Construct a state diagram for a finite state machine with that recognizes all strings in the language {0, 1}*{00}ª{0, 1}*{11}. I = 0 = (0, 1)
Exercise 26 Earthquakes In refer to the data in the indicated exercise. After finding the range of the data, use the range rule of thumb to estimate the value of the standard deviation. Compare the...
What do you know about the mathematical value of the annual worth of a project under each of the following conditions? a. The present worth of the project is greater than 0 . b. The present worth of...
Sara Yu, CPA, was retained by Info Cable to prepare financial statements for April 2014. Yu accumulated all the ledger balances per Info's records and found the following. Sara Yu reviewed the...
What can be learned about the evolution of healthcare in the United States? How do you feel the problem of access and cost to healthcare could/should be solved? What changes do you believe would be...
Two in-series UV reactors are disinfecting water for a small system (not potable use). The microorganism of concern is Ecoli dispersing to the water source from a close-by composite facility. Due to...
Century Dental Associates has currently hired two assistants and two hygienists. The total fixed cost has been calculated at $250,000 annually and the indirect costs, including supplies, has been...
Olivia also bought a lot she was planning to build a house on 3 years ago for $120,000. She recently decided to sell it, rather than build. The lot increased in value and she sold it for $195,000....
Let's say we have a square whose sides all measure 11 inches. Determine to two decimal places the dimensions of the square (in inches) that has twice the area of this square.
Maryam owns a two-year GIC worth $85,000 (which is for her future travel plans), an RRSP worth $25,000, and a chequing account with a balance of $5,000. Each investment is held at a different branch...
An experienced bank auditor can verify a bank's deposits twice as fast as a new auditor. Working together, the auditors take 4 hours to do the job. How long would it take the experienced auditor to...
Discuss the current regulatory framework governing mergers & acquisitions. How effective is it?
Separate variables and use partial fractions to solve the initial value problems in Problems 18. Use either the exact solution or a computer-generated slope field to sketch the graphs of several...
In the January 1, 20X8, consolidated balance sheet, the amount of goodwill reported should be a. $0. b. $76,000. c. $95,000. d. $156,000. On January 1, 20X8, Ritt Corporation acquired 80 percent of...
In the December 31, 20X8, consolidated balance sheet, the amount of noncontrolling interest reported should be a. $200,000. b. $239,000. c. $251,000. d. $252,000. On January 1, 20X8, Ritt Corporation...
On January 1, 20X5, Post Company acquired an 80 percent investment in Stake Company. The acquisition cost was equal to Posts equity in Stakes net assets at that date. On January 1, 20X5, Post and...

Explain the difference between Net Income and Cash flow from Operations.Why is it important for a business

Question:

Expert Answer:

Net income is the profit a company generates after deducting all expenses including taxes and interest from its total revenue Its essentially the bott... View the full answer

Understanding financial statements

Students also viewed these accounting questions