Negative cash flow is when your business has more outgoing than incoming money. negative cash flow is often indicative of a company poor performance
You cannot cover your expenses from sales alone. Instead, you need money from investments and financing to make up the difference. for example, if you had $5,000 in revenue and $10,000 in expenses in April, you had negative cash flow. however, negative cash flow from investing activities might be due to significant amounts of cash being invested in the long term health of the company, such as research and development. free cash flow is the amount of cash flow available for distribution to shareholders after all necessary investments in operating capital have been made. the similarity between the direct and indirect cash flow methods is that the sections other than operating activities remain the same. In other words, investing and financing activities computation is the same in both direct and indirect methods.
To learn more about indicative please click on below link.
https://brainly.com/question/10563917.
#SPJ4
