Murdock Corporation recently announced that its net income in the accrual-based income statement increased sharply from the previous year, yet its net cash flow from operating activities on the statement of cash flows declined. Which of the following could explain this performance?

A. The company may be borrowing more and increasing long-term debt.

B. The company's interest expense increased.

C. The company may be having difficulty collecting on its accounts receivable. 

D. The company's operating income declined.

E. The company's buying of fixed assets increased.

Answer rating: 100% (QA)

As net income have increase though operating cashflow decreased a reason for same ... View the full answer