If a company has negative net cash income, which of the following observations is true?

1. The company did not generate enough cash flow from sales to cover cash production costs.
2. The company did not generate enough net cash after operations to cover interest and dividends.
3. The company did not generate enough cash after operations to pay its taxes.
4. The company did not generate enough cash profits to cover its cash operating expenses

Please explain why the correct answer is B.