Aubey Aircraft recently announced that its net income increased sharply from the previous year,yet its net cash flow from operations declined.What could explain this performance?

Question

Quizplus · Accepted Answer

A decline in depreciation and amortization expenses would increase net income (since these are non-cash expenses), but it would not affect cash flow from operations, which could explain the discrepancy between increased net income and decreased cash flow.

Aubey Aircraft Recently Announced That Its Net Income Increased Sharply