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    Net income is increasing and cash flows from operations

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    If a company's net income is increasing, but its cash flows from operating activities are decreasing, a possible cause is that the company is

    1. making substantial expenditures on new equipment
    2. using substantial amounts of cash to pay off its loans
    3. increasing its inventory at a faster rate than its sales revenue
    4. suffering from an excessive amount of depreciation on old equipment

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    https://brainmass.com/business/accounting/net-income-increasing-cash-flows-operations-433622

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    If a company's net income is increasing, but its cash flows from operating ...

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