58 Understanding the Numbers operating cash f low. This deduction may indicate either that no cash was collected in connection with recording this income or that the income is not considered to be an operating cash-f low item. The absence of a cash inf low is the more likely explanation. But should the $75,000 be seen as nonrecurring? If this were a one-time licensing fee, then it should be treated as nonrecurring in evaluating the $171,472 of 1998 net income. Escalon has a substantial net-operating-loss carryforward, and its 1998 pretax and after-tax results are the same. As a result, this $75,000.
