8. XYZ Company had a negative net capital spending for 2006. The most likely explanation for this number being negative is:

1. XYZ sold many fixed assets during the year.
2. XYZ probably had excellent cash flow during the year.
3. XYZ paid out too much in dividends during the year.
4. XYZ reduced its inventory significantly during 2005.
5. There is an error in the computation. NCS cannot be negative.