Which of the following factors could explain why Dellva Energy had a negative net cash flow last year, even though the cash on its balance sheet increased?
A)The company sold a new issue of bonds.
B)The company made a large investment in new plant and equipment.
C)The company paid a large dividend.
D)The company had high amortization expenses.
E)The company repurchased 20% of its common stock.

Question

Quizplus · Accepted Answer

If Dellva Energy sold a new issue of bonds, it would have received cash from the bond sale, which could increase the cash on its balance sheet despite having a negative net cash flow from operations or other activities.

Which of the Following Factors Could Explain Why Dellva Energy