How can a company report a net loss yet show and increase in cash in their year end financial statements?

Financial statements are based on the accrual basis of accounting, that is, there are many "expenses" that are non-cash or the cash has not yet been paid out for them. For example, if you ordered supplies, received them, but have not yet paid for them, standardized accounting requires that you book it as an expense on the income statement. However, since you have not paid for them, you have not used up the cash on your books.

Another big item is depreciation. Depreciation is the "expense" of using a fixed asset, but this is non-cash.

When calculating cash flow, you take net income - which as mentioned above includes all these non-cash expenses such as not yet paid for expenses and depreciation - add back the non-cash expenses, subtract other uses of cash, and you get operating cash flow.

None cash type expenses like depreciation and amortization of assets will decrease net income yet not effect cash flow is the most obvious.

There are many other factors such as receivables and payables and loans etc.

That is why there are 3 major statements for a business:

a balance sheet, an income statement and a statement of cash flows. They all represent different things.

You would have to know what they represent to be able to make any meaningful conclusions from the data found in them.

as i read your question,i realized that it was just a statement. one i agree with,i might add. if jesus' closest followers had trouble with this saying,it seems to make sense that 2000 years later,some folks might still be confused. but why drive a wedge deeper between our brothers and sisters. what about love,hope,longsuffering,and perseverance and unity. you are a sister in christ with me,and we are joint heirs to the kingdom through our lord.yet i feel like you wouldnt even have me over for lunch,or have a nice bible study,because im a "protestant"...a label i dont really like.i prefer plain ole christian. why the need to be divided.all this stuff about we're right,and your wrong.....it acheives nothing. im wrong...it causes dissention,anger,and division.all of which our father would not approve of. many blessings tebone!