Analysts Following Armstrong Products Recently Noted That the Company's Operating

Analysts following Armstrong Products recently noted that the company's operating net cash flow increased over the prior year, yet cash as reported on the balance sheet decreased. Which of the following factors could explain this situation?

A) the company issued new long-term debt.
B) the company cut its dividend.
C) the company made a large investment in a profitable new plant.
D) the company sold a division and received cash in return.
E) the company issued new common stock.

Correct Answer:

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