Kramer Corporation Recently Announced That Its Net Income Was Lower

Multiple Choice

Kramer Corporation recently announced that its net income was lower than last year. However, analysts estimate that the company's net cash flow increased. What factors could explain this discrepancy?

A) The company's depreciation expense increased.
B) The company's interest expense declined.
C) The company had an increase in its noncash revenues.
D) Answers a and b are correct.
E) Answers b and c are correct.