Danielle's Sushi Shop Last Year Had (1) a Negative Net

Multiple Choice

Danielle's Sushi Shop last year had (1) a negative net cash flow from operations, (2) a negative free cash flow, and (3) an increase in cash as reported on its balance sheet.Which of the following factors could explain this situation?

A) The company had a sharp increase in its depreciation and amortization expenses.
B) The company had a sharp increase in its inventories.
C) The company had a sharp increase in its accrued liabilities.
D) The company sold a new issue of common stock.
E) The company made a large capital investment early in the year.