Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined. Which of the following could explain this performance?

Question 5 options:

Which one of the following statements is correct concerning a corporation with taxable income of $125,000? An increase in depreciation will increase the operating cash flow. An increase in the tax rate will increase both net income and operating cash flow. Net income minus dividends paid will equal the ending retained earnings for the year. Net income divided by the number of shares outstanding will equal the dividends per share. Interest paid will be included in investing cash flow.