Which of the following factors would explain how a company's cash balance could have increased even though the company had a negative cash flow last year?
A) The company sold a new issue of bonds.
B) The company made a large investment in a new plant and equipment.
C) The company paid a large dividend.
D) The company had high depreciation expenses.
E) The company repurchased 20% of its common stock.

Question

Quizplus · Accepted Answer

If the company sold a new issue of bonds, it would have received cash inflow which would increase the cash balance even though it had negative cash flow from its operations.

Which of the Following Factors Would Explain How a Company's