Which of the Following Factors Could Explain Why Dellva Energy

question 68

Multiple Choice

Which of the following factors could explain why Dellva Energy had a negative net cash flow last year, even though the cash on its balance sheet increased?

• A)The company sold a new issue of bonds.
• B)The company made a large investment in new plant and equipment.
• C)The company paid a large dividend.
• D)The company had high amortization expenses.
• E)The company repurchased 20% of its common stock.

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Definitions:

Net Income

Company's earnings following the deduction of all expenses and taxes from its revenue.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets between divisions or departments within the same entity, often for internal record-keeping and consolidation purposes.

Net Income

The net income a company earns once all costs and taxes are subtracted from its total revenues.

Consolidated Gain

The total profit achieved by a group of consolidated entities or a parent company and its subsidiaries, usually reported in consolidated financial statements.