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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