Last year aldrin co. had negative net cash flow, yet its cash on the balance sheet increased. what could explain these events? select one: a. aldrin issued long-term debt. b. aldrin repurchased some of its common stock. c. aldrin sold some of its assets. d. statements a and b are correct. e. statements a and c are correct.

option C

Explanation: Cash flow can be categorized as inflow and outflow. Inflow can be defined as the money coming in the business like revenue. Cash outflow is money leaving the business like in form of expenditures.

Excess of cash inflow over cash outflow results in positive cash flows and vice- versa.

a. Debt is a source of capital hence its issuance will result in inflow of money.

b. Company will have to spend money for repurchasing the stock therefore it will be a cash outflow.

c. selling of assets will bring money to the firm,hence,cash inflow.

Thus, occurrence of either A or C can result in increase in cash flow.

2

Step-by-step explanation: