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    Causes of negative or positive cash flow from operations etc

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    Upon studying its statement of cash flows, you note that over the last three years a firm has consistently reported negative cash flow from operating activities, positive cash flow from investing activities, and negative cash flow from financing activities. What does this combination of cash flows suggest to you about the firm? Is there any additional information that you would like to see? If so, what?

    (response is 382 words)

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    Solution Summary

    Sorting out whether positive or negative cash flows indicate a problem or can occur in healthy organizations can be figured out! This discussion (just over a page, 382 words) helps the student to sort through what kinds of things generate positive and negative cash flow in each of the three sections and what they might mean. Discussion is in everyday language and suitable for novices to intermediate.