Can net cash flow be zero even when net income is different from zero?

Yes, it is possible for net cash flow to be zero even when net income is different from zero. Net cash flow is the difference between cash inflows and cash outflows during a specific period, while net income is the difference between revenues and expenses during the same period.

There are several reasons why net cash flow could be zero even when net income is different from zero. For example, a company may have significant non-cash expenses, such as depreciation or amortization, which are included in the calculation of net income but do not involve actual cash outflows. Additionally, changes in working capital, such as accounts receivable or accounts payable, can also impact cash flow without affecting net income.

In summary, net cash flow can be zero even when net income is different from zero due to non-cash expenses, changes in working capital, or other factors that affect cash flow but not net income.

Yes