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Last year, Tucker Technologies had (1) a negative net cash flow from operations,

ID: 2347476 • Letter: L

Question

Last year, Tucker Technologies had (1) a negative net cash flow from operations, (2) a negative free cash flow, and (3) an increase in cash as reported on its balance sheet.
Which of the following factors could explain this situation?
Answer

The company had a sharp increase in its inventories.

The company had a sharp increase in its accrued liabilities.

The company sold a new issue of common stock.

The company made a large capital investment early in the year.

The company had a sharp increase in its depreciation and amortization expenses.

Explanation / Answer

Last year, Tucker Technologies had (1) a negative net cash flow from operations, (2) a negative free cash flow, and (3) an increase in cash as reported on its balance sheet.
Which of the following factors could explain this situation?
Answer

The company had a sharp increase in its inventories.

The company had a sharp increase in its accrued liabilities.

The company sold a new issue of common stock.

The company made a large capital investment early in the year.

The company had a sharp increase in its depreciation and amortization expenses.