Total Marks 2
Starting Date Monday, November 14, 2011
Closing Date Wednesday, November 16, 2011
Status Open
Question/Description
Discussion Question:
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?
Important Instructions:
Your discussion must be based on logical facts.
Your comments on the topic should only contain the logical reasons. Avoid unnecessary details.
The GDB will remain open for 3 working days / 72 hours.
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Obnoxious or ignoble answer should be strictly avoided.
Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.
For Detailed Instructions please view the GDB Announcement.
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