Analysts who follow Howe Industries recently noted that,relative to the previous year,the company's net cash provided from operations increased,yet cash as reported on the balance sheet decreased.Which of the following factors could explain this situation?
A) The company cut its dividend.
B) The company made large investments in fixed assets.
C) The company sold a division and received cash in return.
D) The company issued new common stock.
E) The company issued new long-term debt.

Question

​Analysts who follow Howe Industries recently noted that,relative to the previous year,the company's net cash provided from operations increased,yet cash as reported on the balance sheet decreased.Which of the following factors could explain this situation?
A) ​The company cut its dividend.
B) ​The company made large investments in fixed assets.
C) ​The company sold a division and received cash in return.
D) ​The company issued new common stock.
E) ​The company issued new long-term debt.

Quizplus · Accepted Answer

B) The company making large investments in fixed assets could explain the situation where net cash provided from operations increased, yet cash as reported on the balance sheet decreased. This is because the cash generated from operations might have been used to pay for these investments, leading to a decrease in cash reserves despite the operational success.

​Analysts Who Follow Howe Industries Recently Noted That,relative to the Previous

Analysts Who Follow Howe Industries Recently Noted That,relative to the Previous