Danielle's Sushi Shop Last Year Had (1) a Negative Net

question 40

Multiple Choice

Danielle's Sushi Shop last year had (1) a negative net 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 depreciation and amortization expenses.
• B) The company had a sharp increase in its inventories.
• C) The company had a sharp increase in its accrued liabilities.
• D) The company sold a new issue of common stock.
• E) The company made a large capital investment early in the year.

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