Analysts Who Follow Howe Industries Recently Noted That, Relative to the Previous

question 82

Multiple Choice

Analysts who follow Howe Industries recently noted that, relative to the previous year, the company's operating net cash flow INCREASED, yet cash as reported on the balance sheet DECREASED. Which of the following factors could explain this situation?

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

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