A security analyst obtained the following information from financial statements.

-retained earnings at the end of 2011 were $700,000, but retained earnings at the end of 2012 had declined to $320,000

-th company does not pay dividends

- the company's depreciation expense is its only non-cash expense; it has no amortization charges

- the company has no non-cash revenues

- the company's net cash flow for 2012 was $150,000

Which of the following is correct

The company had negative net income in 2012

Depreciation expense in 2012 was less than $150,000

Had positive net income in 2012 but it's income was less than its 2011 income

The ncf in 2012 must be higher than the ncf in 2011

Cash on the balance sheet at the end of 2012 must be lower than the cash in 2011