Is negative cash from operating activities a negative


Questions -

1. Is negative cash from operating activities a negative indicator for a company? Why or why not? What about negative cash from investing activities?

2. Why does the statement of cash flow begin with income items that contain both cash and non-cash items in the operating activity section of the company? Please indicate whether the operating activities of the cash flow are on the direct method or the indirect method. Please provide a rationale for your statement.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Is negative cash from operating activities a negative
Reference No:- TGS02845112

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)