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

question 45

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.

---

Definitions:

Efficiency

The ability to achieve a desired result without wasted energy or effort.

Government Agencies

Public organizations at the local, state, or national level that implement government policies, provide services, and enforce regulations.

Nonprofit Firms

Organizations that operate for purposes other than generating profit, typically focusing on social, educational, or charitable activities.

Buying Objective

The goals or aims that guide a consumer's or organization's purchasing decisions, including considerations like quality, cost, and convenience.