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Does a loss mean negative operating cash flows? Explain

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Qwest Communications Inc. reported $757 million loss in 2005. Does this necessarily mean the company's operating activities consumed cash in 2005?

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Solution Summary

This solution helps the reader to carve out the needed information from the overload of data in the cash flow statement. Discussion is 174 words in everyday language suitable for a novice.

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Here is a smaller and less intimidating version of the statement of cash flows for 2005 (see these numbers highlighted in yellow in the statement in excel):

Income Before Extraordinary Items (757.000)
Depreciation and Amortization 3,065.000
Less net of ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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