How net income could increase for nanotech

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Reference no: EM132753471

In reviewing the financial statements of NanoTech Co., you discover that net income increased, while operating cash flows decreased for the most recent two consecutive years.

Required:

Problem 1: Explain how net income could increase for NanoTech while its operating cash flows decrease. Your answer should include three illustrative examples.

Problem 2: Describe how operating cash flows can serve as one indicator of earnings quality.

Reference no: EM132753471

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