Danielle's Sushi Shop last year had (1) a negative net 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 depreciation and amortization expenses.
B. The company had a sharp increase in its inventories.
C. The company had a sharp increase in its accrued liabilities.
D. The company sold a new issue of common stock.
E. The company made a large capital investment early in the year.


Answer: D

Business

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