Austin Financial recently announced that its net income increased sharply from

Question

Austin Financial recently announced that its net income increased sharply from the previous year, yet its net cash provided from operations declined. Which of the following could explain this performance?

a. The companys dividend payment to common stockholders declined.

b. The companys expenditures on fixed assets declined.

c. The companys cost of goods sold increased.

d. The companys depreciation expense declined.

e. The companys interest expense increased.

Answer

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