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firm experiences an increase in its cash balances in the statement of cash flows in a period when it has negative cash flows from both

firm experiences an increase in its cash balances in the statement of cash flows in a period when it has negative cash flows from both operations and financing. Which of the following would explain this observation?

  • The firm has low depreciation expense.

  • The firm did not pay any dividends.

  • The firm sold more equipment than it purchased.

  • The firm has a low interest rate on its debt.

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