Analysts Following Armstrong Products Recently Noted That the Company's Net

question 57

Multiple Choice

Analysts following Armstrong Products recently noted that the company's net cash flow from operations increased over the prior year, yet cash as reported on the balance sheet decreased.Which of the following factors could explain this situation?

• A) The company issued new long-term debt.
• B) The company cut its dividend.
• C) The company made a large investment in a profitable new plant.
• D) The company sold a division and received cash in return.
• E) The company issued new common stock.

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Definitions:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation and observation.

Operational Definition

A clear, precise description of a variable in terms of the procedures used to measure or manipulate it in a research study.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.