Last year Besset Companys operations provided a negative cas

Last year Besset Company\'s operations provided a negative cash flow, yet the cash shown on its balance sheet increased. Which of the following statements could explain the increase in cash? O The company repurchased some of its common stock. O The company sold some of its fixed assets O The company had high depreciation expenses. O The company dramatically increased its capital expenditures. The company retired a large amount of its long-term debt.

Solution

Answer is The company sold some of its fixed assets.

Explanation:

The cash is realised from the sale of fixed assets which is a part of investing activities which offset the negative cash flow from operating activities to show the net increase in cash during the year.