O eztomheducationcomhmtpx Connect FINANCE ptual Review Quest

O ezto.mheducation.com/hm.tpx Connect FINANCE ptual Review Questions (ch. 2,3, 5) Question 7 of 30) You Which one of the following must be true if a fiem hed a negetive cash flow from assets despite having postive cash flow to creditors? O The firm didn\'t pay a dividend Newly issued shares of stock were sold O The firm acquired new fixed assets O The fim had a net loss for the period O The fim borrowed money 7 8 9

Solution

The cash flow from assets is basically used for giving it to the stockholders of the firm and the creditors of the firm.Cash flow from assets is know is free cash flow. So the ans is option 3 - The firm acquired new fixed asset.The cash outflow happens when the firm buys new assets.

Ans is option 3