The earnings reported by a company can be very different from its cash flows. There are companies that report very large positive earnings while also generating large negative cash flows. Which of the following is most likely to create this phenomenon?

a.

Low capital expenditures, low depreciation, decreasing working capital

b.

Low capital expenditures, high depreciation, increasing working capital

c.

Low capital expenditures, high depreciation, decreasing working capital

d.

High capital expenditures, low depreciation, increasing working capital

e.

High capital expenditures, high depreciation, decreasing working capital