Negative Cash Flow

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situation in which a business spends more cash than it receives through earnings or other transactions in an accounting period.
See also cash flow.

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Situation in which a property owner must make an outlay of funds to operate a property.


Example: Baker acquires an apartment building with the first year income statement shown in Table 32. Baker must spend $5,000 to operate the building for the first year, because of a negative cash flow.
Table 32 Negative Cash Flow

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