Last Year,Delip Industries Had (1)negative Cash Flow from Operations, (2)a

question 35

Multiple Choice

Last year,Delip Industries had (1) negative cash flow from operations, (2) a negative free cash flow,and (3) an increase in cash as reported on its balance sheet.Which of the following factors could explain this situation?

• A) The company had a sharp increase in its inventories.
• B) The company had a sharp increase in its accrued liabilities.
• C) The company sold a new issue of common stock.
• D) The company made a large capital investment early in the year.
• E) The company had a sharp increase in depreciation expenses.

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Definitions:

Straight Voting

A corporate voting procedure in which shareholders may cast all votes for a single candidate for the board.

Cumulative Voting

A voting system that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates, often used in corporate board elections to strengthen the voting power of minority shareholders.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make important decisions for a corporation.

Dividend Yield

An indicator in finance measuring the dividends paid by a company each year against its share price.