A Security Analyst Obtained the Following Information from Prestopino Products

A security analyst obtained the following information from Prestopino Products' financial statements: - Retained earnings at the end of 2011 were $700,000, but retained earnings at the end of 2012
Had declined to $320,000.
- The company does not pay dividends.
- The company's depreciation expense is its only non-cash expense; it has no amortization
Charges.
- The company has no non-cash revenues.
- The company's net cash flow (NCF) for 2012 was $150,000.
On the basis of this information, which of the following statements is correct?

A) Prestopino had negative net income in 2012.
B) Prestopino's depreciation expense in 2012 was less than $150,000.
C) Prestopino had positive net income in 2012, but its income was less than its 2011 income.
D) Prestopino's NCF in 2012 must be higher than its NCF in 2011.