[virtualinspire.com] acc501 gdb

i want acc501 gdb idea solution..thanks

Question is

Mr. Fahad has just been appointed as CEO of Star Company. Having a specialization in the field of HR, he is not well aware of the concepts of Accounting and Finance though he is familiar with them. At the end of the year, he is confused while going through the financial statements of the company that why the Income Statement is reporting a loss whereas there is a positive net cash flow in Cash Flow Statement. Being Financial Manager of the company, how would you make this technical point clear to Mr. Fahad by mentioning the possible situations where a company can have a positive net cash flow with a negative net income?





regards,
Humaira


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