Cash Flow from Assets Must Be Negative When

Multiple Choice

Cash flow from assets must be negative when:

A) The firm has a taxable loss for the year.
B) The cash flow from creditors and the cash flow from stockholders are both negative.
C) The cash flow from creditors is negative and the cash flow from stockholders is positive.
D) The change in net working capital exceeds the net capital spending.
E) Operating cash flow is less than the change in net working capital.