A Security Analyst Obtained the Following Information from Prestopino Products

Multiple Choice

A security analyst obtained the following information from Prestopino Products' financial statements: ∙
Retained earnings at the end of the previous year were $700,000, but retained earnings at the end of the current year had declined to $320,000.
∙
The company does not pay dividends.
∙
The company's depreciation expense is its only non-cash expense; it has no amortization charges.
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The company has no non-cash revenues.
∙
The company's net cash provided (used) by operations for the current year was $150,000.
On the basis of this information, which of the following statements is CORRECT?

A) Prestopino had negative net income in the current year.
B) Prestopino's depreciation expense in the current year was less than $150,000.
C) Prestopino had positive net income in the current year, but its income was less than its previous year's income.
D) Prestopino's cash flow provided by operations in the current year must be higher than in the previous year.
E) Prestopino's cash on the balance sheet at the end of the current year must be lower than the cash it had on the balance sheet at the previous year.