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

question 13

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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Definitions:

First Trophic Level

Refers to the base of an ecosystem's food web, primarily made up of autotrophic organisms like plants and algae that produce their own food through photosynthesis.

Producers

Organisms, typically plants or algae, that synthesize their own food from inorganic substances using light or chemical energy, forming the base of a food chain.

Secondary Consumers

Organisms, typically animals, that consume primary consumers for energy. They are part of the second level in the food chain.

Shade-Tolerant Plants

Plants that can grow and reproduce under low light conditions, as found under the canopy of forests.