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.