Dear Exparts,

Please teach me the following question.

If a firm has negative free cash flow, it has not sold or reduced any current or fixed assets, yet it shows an increse in cash as reported on its balance sheet what could have caused this situation? Which of the following statements is correct? And why is the reason?

a There is an increse in company's depreciation and amortization expenses.

b There is a change in the company's inventory accounting.

c The company had a sharp increse in its accrued liabilities.

d The company sold a new issue of common stock.

e The company made a large capital investment early in the year.