The correct answer is: D. None of the above
Cash flow from operations (CFO) is a measure of a company’s ability to generate cash from its core business activities. It is calculated by taking net income and adding back non-cash expenses, such as depreciation and amortization. CFO is important because it provides a more accurate picture of a company’s financial health than net income alone.
Net profit is a company’s total revenue minus its total expenses. It is a measure of a company’s profitability, but it does not take into account a company’s cash flow. For example, a company could have a high net profit but still be struggling to generate cash if it has a lot of accounts receivable or inventory.
Decrease in current assets is a decrease in a company’s assets that are expected to be converted into cash within one year. This includes items such as cash, accounts receivable, and inventory. A decrease in current assets can be a sign that a company is having trouble selling its products or collecting its receivables.
Increase in current assets is an increase in a company’s assets that are expected to be converted into cash within one year. This includes items such as cash, accounts receivable, and inventory. An increase in current assets can be a sign that a company is doing well and is generating more cash from its operations.
Therefore, none of the options A, B, and C are correct.