financial statements2

financial statements2 - Net cash flow and net income i ....

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Net cash flow and net income Answer: b Diff: E R i . Holmes Aircraft recently announced an increase in its net income, yet its net cash flow declined relative to last year. Which of the following could explain this performance? a. The company’s interest expense increased. b. The company’s depreciation and amortization expenses declined. c. The company’s operating income declined. d. All of the statements above are correct. e. None of the statements above is correct. Net cash flow and net income Answer: a Diff: E R ii . Kramer Corporation recently announced that its net income was lower than last year. However, analysts estimate that the company’s net cash flow increased. What factors could explain this discrepancy? a. The company’s depreciation and amortization expenses increased. b. The company’s interest expense declined. c. The company had an increase in its noncash revenues. d. Statements a and b are correct.
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This note was uploaded on 08/04/2011 for the course COMM 101 taught by Professor Sy during the Spring '11 term at USC.

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financial statements2 - Net cash flow and net income i ....

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