Chapter 11, Problem 9RQ

To determine

Cash flow statement:

Statement of cash flows is a statement showing the source and application of cash between two balance sheet dates. It shows how the cash is sourced and used for the company’s operating, investing, and financing activities.

Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.

Accrual basis of accounting:

Accrual basis of accounting refers to recognizing the financial transactions during the period in which the event occurs, even if the cash is not exchanged.

To explain: Whether there is possibility for getting net loss and increased net cash flow from operating activities in the same period.