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Sam\'s Motels\' operations provided a negative net cash flow last year, yet the

ID: 2612842 • Letter: S

Question

Sam's Motels' operations provided a negative net cash flow last year, yet the cash shown on its balance sheet increased. Which of the following statements could explain the increase in cash, assuming the company's financial statements were prepared under generally accepted accounting principles?

The company had high depreciation expenses.

The company repurchased some of its common stock.

The company dramatically increased its capital expenditures.

The company retired a large amount of its long-term debt.

The company sold some of its fixed assets.

The company had high depreciation expenses.

The company repurchased some of its common stock.

The company dramatically increased its capital expenditures.

The company retired a large amount of its long-term debt.

The company sold some of its fixed assets.

Explanation / Answer

ANSWER:

Answer is 5 . The Company sold some of its fixed Assets.

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