Final answer:
The correct answer is option 1 and 3. Greshak Corp's financial situation, with negative cash flows but an increase in cash, is reflective of strategies such as cost cutting, as seen in the profits of S&P 500 companies post-2009 recession.
Step-by-step explanation:
The student is inquiring about a scenario where Greshak Corp experienced a negative net cash flow from operations, a negative free cash flow, and yet reported an increase in cash for the most recently completed fiscal year.
Despite this seeming contradiction, a similar trend can be observed in the broader economic context, as noted by the Wall Street Journal regarding S&P 500 companies between the end of the recession in 2009 through the second quarter of 2013. During this period, these companies saw a growth of 9.7% in profits, which can be attributed to cost cutting and reductions in input costs.
This could imply that Greshak Corp may have engaged in similar financial strategies or had other sources of cash inflow which offset their negative cash flows from operations and resulted in an overall increase in cash.
Furthermore, this scenario underscores the importance of considering additional financial measures when evaluating a company's performance, given that cash flow and profitability do not always move in tandem.