Kaleidoscope Technology manufactures computer products. The company suffered a loss
Kaleidoscope Technology manufactures computer products. The company suffered a loss of nearly $450 million in 2009. However, the company’s statement of cash ?ows for that year reported a net cash ?ow from operating activities of approximately $20 million.,Required:,(a) How could this company incur a large loss in a given year but still have a positive cash ?ow from operating activities in 2009?,(b) Do you think the loss or the positive cash ?ow is more important to current and future investors? Explain your answer.
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