Section B (2 Mark)Last year, Owen Technologies reported negative net cash flow and negative free...

AAFM CWM_LEVEL_2 Question Answer

Section B (2 Mark)

Last year, Owen Technologies reported negative net cash flow and negative free cash flow. However, its cash on the balance sheet increased. Which of the following could explain these changes in its cash position?

The company had a sharp increase in its depreciation and amortization expenses.

The company had a sharp increase in its inventories.

The company issued new common stock.

Statements a and b are correct.

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Section B (2 Mark)Last year, Owen Technologies reported negative net cash flow and negative free...

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