151. Significance of cash flows In the long run, is it more important for a business to have a positive cash flow from its operating activities, investing activities, or financing activities? Why? ...

151. Significance of cash flows

In the long run, is it more important for a business to have a positive cash flow from its operating activities, investing activities, or financing activities? Why?

152. Significance of cash flows

Saxony, Inc. is a relatively new business. In its first three years of operations, the company has recorded positive and increasing net cash flows from its operating activities. In each of these three years the company has also reported a net loss on its income statement. Suggest at least one plausible explanation for these financial results. Given the net losses in the first three years of operations, should investors be concerned about the solvency and future profitability of Saxony? Explain.