If a firm's net income is positive and its noncash expenses are positive, which of the following could account for a negative amount of cash provided by operations?

Question

Quizplus · Accepted Answer

When current assets increase more than current liabilities, it means the firm is using more cash to fund its operations or increase its inventory, which can lead to a negative cash flow from operations despite having a positive net income and noncash expenses.

If a Firm's Net Income Is Positive and Its Noncash