Question

Create an example of a situation where there is a negative cash flow.

Answer 1

Negative cash flow is when your business has more outgoing than incoming money. You cannot cover your expenses from sales alone. ... For example, if you had $5,000 in revenue and $10,000 in expenses in April, you had negative cash flow. Negative cash flow is common for new businesses.

Answer 2

Explanation:

If there is any company that has to pay a bill but is not able to pay the bills and has to borrow then this is a case of negative cash flow.It means the company is spending more than it is earning. Companies take loan to fulfill negative cash flow..