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If Morris Corporation Has a Negative $131 Million Free Cash

Question 150

Multiple Choice

If Morris Corporation has a negative $131 million free cash flow, which of the following statements is most likely true?


A) Morris' capital expenditures plus its cash dividends are less than its cash provided by operations.
B) This free cash flow indicates that Morris is in good shape to repay its long-term obligations when they come due.
C) This free cash flow indicates that Morris presents good cash generating ability to retire stock.
D) Morris' cash provided by operations is less than its cash dividends plus capital expenditures.

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