Dora Manufacturing, a capital-intensive company that manufactures commercial snow blowers, announced that it is expecting a record loss of $7,000,000 in 2018. However, it also stated that its business is generating sufficient cash to meet its obligations due in 2018. How can Dora lose $7 million and still generate cash necessary to meet obligations?

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The Answer of Dora Manufacturing, a capital-intensive company that manufactures commercial snow blowers, announced that it is expecting a record loss of $7,000,000 in 2018. However, it also stated that its business is generating sufficient cash to meet its obligations due in 2018. How can Dora lose $7 million and still generate cash necessary to meet obligations?

Dora Manufacturing, a Capital-Intensive Company That Manufactures Commercial Snow Blowers