a-company-has-a-net-income-of-100000-but-a-cash-flow-from-operations-of-20000-wh

Question

A company has a net income of $$100,000 but a cash flow from operations of 20$$,000. What could be a reason for this discrepancy?

Accepted Answer

The company has significant uncollected accounts receivable.

Answer

The company has issued significant amounts of new stock to investors.

Answer

The company has purchased substantial new equipment for expansion.

Answer

The company has paid off substantial long-term debt obligations.

A company has a net income of \$100,000 but a cash flow from operations of \$20,000. What could be a reason for this discrepancy?