Question

Which of the following factors could explain why Dellva Energy had a negative net cash flow last year, even though the cash on its balance sheet increased? The company sold a new issue of bonds. The company made a large investment in new plant and equipment. The company paid a large dividend. The company had high amortization expenses. The company repurchased 20% of its common stock.

Answer 1

Answer:

The company sold a new issue of bonds.

Step-by-step explanation:

A new issue of bonds is commonly known as a process or a way by which companies try to acquire a substantial amount of money via bonds selling in a typical bond market. The company, in this case, recorded a negative net cash flow in its balance sheet even with an increase in cash flow because it sold a new issue of bonds.