Which of the following factors could explain why Regal Industrial Fixtures had a negative net cash flow provided (used) by operations year, even though the cash on its balance sheet increased?
A) The company repurchased 20% of its common stock.
B) The company sold a new issue of bonds.
C) The company made a large investment in new plant and equipment.
D) The company paid a large dividend.
E) The company issued preferred stock.

Question

Quizplus · Accepted Answer

Issuing new bonds would provide cash inflow, increasing cash on the balance sheet, even if operations had a negative cash flow.

Which of the Following Factors Could Explain Why Regal Industrial