Holmes Aircraft Recently Announced an Increase in Its Net Income

Multiple Choice

Holmes Aircraft recently announced an increase in its net income, yet its net cash flow declined relative to last year. Which of the following could explain this performance?

A) The company's interest expense increased.
B) The company's depreciation expense declined.
C) The company's operating income declined.
D) All of the statements above are correct.
E) None of the statements above is correct.