How is it possible for a company to suffer a net loss


Discussion Question

Explain why the users require both ‘income statement' and ‘statement of cash flows' when making decisions. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from operating activities?

(Word limit: 250 - 300 words)

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Microeconomics: How is it possible for a company to suffer a net loss
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