A company can have a positive net income but negative cash flow for several reasons. This could be due to large capital expenditure, such as buying property or new equipment, or the purchase of inventory to supply an order. It could also be because of payments owed such as accounts payable, which could include wages and taxes. If cash outflows due to expenses like these are greater than the company’s cash inflows from sales, it can create a negative cash flow. The company will still have a positive net income due to their assets also increasing in value, but this doesn’t change the fact that cash is disappearing from the balance sheet.