If Morris Corporation Has a Negative $131 Million Free Cash

question 125

Multiple Choice

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?

• A) Morris' capital expenditures plus its cash dividends are less than its cash provided by operations.
• B) This free cash flow indicates that Morris is in good shape to repay its long-term obligations when they come due.
• C) This free cash flow indicates that Morris presents good cash generating ability to retire stock.
• D) Morris' cash provided by operations is less than its cash dividends plus capital expenditures.