Last year, Delip Industries had (1) negative cash flow from operations, (2) a negative free cash flow, and (3) an increase in cash as reported on its balance sheet. Which of the following factors could explain this situation?
A. The company had a sharp increase in its inventories.
B. The company had a sharp increase in its accrued liabilities.
C. The company sold a new issue of common stock.
D. The company made a large capital investment early in the year.
E. The company had a sharp increase in depreciation expenses.
Answer: C
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