What Is the Most Likely Conclusion for a Firm Whose

question 32

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:

Stroke

A medical condition caused by the interruption of blood supply to a part of the brain, leading to a rapid loss of brain function.

Brain Cells

Cells located in the brain, including neurons and glial cells, responsible for processing information, signaling, and supporting brain functions.

Inadequate Blood Flow

A condition where the blood circulation is insufficient to meet the body's needs, potentially leading to various health issues.

Amyotrophic Lateral Sclerosis

A degenerative neurological disease that affects nerve cells in the brain and spinal cord, leading to muscle weakness and eventual loss of muscle control.