Last Year, Tucker Technologies Had (1) a Negative Net Cash

question 48

Multiple Choice

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?

• A) The company had a sharp increase in its inventories.
• B) The company had a sharp increase in its accrued liabilities.
• C) The company sold a new issue of common stock.
• D) The company made a large capital investment early in the year.
• E) The company had a sharp increase in its depreciation and amortization expenses.

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Definitions:

Gestation

Pregnancy.

Embryo

The early form of life in the uterus between the stages of blastocyst and fetus.

Gestation

The process or period of developing inside the womb between conception and birth.