Posted: June 19th, 2015

How can a company show a high net income and have difficulties with cash flow? How can such a situation arise?

The statement of cash flows provides information about the cash inflows and outflows from operating, financing, and investing activities during an accounting period. Furthermore, the statement of cash flows is vital in that it is the only source in financial statement data for learning about the generation of cash from operations. Answer the questions below in your own words & in paragraph form. Follow the APA Guidelines (file uploaded) & read also the Course Readings (files uploaded). Do not write introduction & conclusion. You can add additional sentences/paragraphs. You can research on the Internet or books/journals & you can add additional references. QUESTIONS: How can a company show a high net income and have difficulties with cash flow? How can such a situation arise? What may be the ramifications of this situation?