Which of the following factors could explain why Michigan Energy's cash balance increased even though it had a negative cash flow last year?
A)The company sold a new issue of bonds.
B)The company made a large investment in 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

Selling new bonds would bring in additional cash to the company, even if there is a negative cash flow from operations.

Which of the Following Factors Could Explain Why Michigan Energy's