Analysts Following Armstrong Products Recently Noted That the Company's Operating

question 46

Multiple Choice

Analysts following Armstrong Products recently noted that the company's operating net cash flow increased over the prior year, yet cash as reported on the balance sheet decreased. Which of the following factors could explain this situation?

• A) the company issued new long-term debt.
• B) the company cut its dividend.
• C) the company made a large investment in a profitable new plant.
• D) the company sold a division and received cash in return.
• E) the company issued new common stock.

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Definitions:

Economies of Scope

Cost advantages that enterprises obtain due to efficient utilization of resources across multiple products or services.

Myelencephalon

Most caudal portion of the embryonic brain; also called medulla oblongata.

Mesencephalon

Midbrain in both the embryo and adult; consists of the cerebral peduncle and the corpora quadrigemini.

Diencephalon

Second portion of the embryonic brain; in the inferior core of the adult cerebrum.