Analysts Following Armstrong Products Recently Noted That the Company's Operating

question 38

Multiple Choice

Analysts following Armstrong Products recently noted that the company's operating net cash flow increased over the prior year,yet cash as reported on the balance sheet decreased.Which of the following factors could explain this situation?

• A) The company issued new long-term debt.
• B) The company cut its dividend.
• C) The company made a large investment in a profitable new plant.
• D) The company sold a division and received cash in return.
• E) The company issued new common stock.

---

Definitions:

Power Inequalities

Disparities in control, authority, or influence among individuals or groups within a society or organization.

Uncertainty Avoidance Cultures

Societies that have a low tolerance for ambiguity and uncertainty, often relying on strict rules and procedures to manage situations.

Long-Term Employment

A work arrangement where an employee is engaged with an organization for an extended period, often leading to greater job security and benefits.

Short-Term Orientation

A perspective or approach that focuses on achieving immediate results rather than long-term goals.