What Is the Most Likely Conclusion for a Firm Whose

question 11

Multiple Choice

What is the most likely conclusion for a firm whose statement of cash flows shows an increase in cash balances and has negative cash flows from both operations and financing?

• A)the firm has low depreciation expense.
• B)the firm did not pay any dividends.
• C)the firm sold more equipment than it purchased.
• D)the firm has a low interest rate on its debt.

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Definitions:

Proposals

Formal plans or suggestions put forward for consideration or discussion by others, often related to projects, research, or policy changes.

Distribution

The process of making a product or service available for consumption by a consumer or business user.

Price Tags

Labels on goods indicating their cost.

Consumers

Individuals or groups who use goods and services generated within the economy.