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:

Autonomous Thinking

Independent thinking that is not influenced by others' opinions or beliefs; self-directed reasoning.

Heteronomous Thinking

A stage in cognitive development where children believe that rules are unchangeable and given by authority, typically associated with Jean Piaget's moral development stages.

Preconventional Moral Thought

The first stage in Kohlberg's theory of moral development, where behavior is influenced by the consequences of actions, including punishment and reward.

Immanent Justice

Piaget’s concept of the childhood expectation that if a rule is broken, punishment will be meted out immediately.