a. Because of the regulation from G.A.A.P. , companies can present positives cash flows even though they are having negative earnings. In the case Vonage’s net income, this company has not made a net income since they have been established in 2002. According to Edmonds (2011) a company won’t be around for too long if they are not making cash from operating activities.
b. According to the information from the statement of cash flows, Vonage doesn’t appear to be making any improving. By looking into the accounts receivable, Vonage are not doing well in cashing in money from customers and that’s how it’s look when company’s uses the indirect method.
c. In order to Vonage paid off over $250 million, they had to collect money from account
b. According to the information from the statement of cash flows, Vonage doesn’t appear to be making any improving. By looking into the accounts receivable, Vonage are not doing well in cashing in money from customers and that’s how it’s look when company’s uses the indirect method.
c. In order to Vonage paid off over $250 million, they had to collect money from account