What can be concluded about ABC's cash flow last year given their financial activities?

To understand the correct conclusion about ABC's cash flow from their financial activities, it's important to look at the implications of having a negative free cash flow. Free cash flow is calculated by taking operating cash flow and subtracting capital expenditures. A negative free cash flow means that ABC spent more on capital expenditures than it generated from its operations.

This financial situation often signals that the company may be facing financial difficulties, as it suggests that the business is not generating enough operational cash to cover its investments in infrastructure, systems, or equipment necessary for growth or maintenance. Consequently, the company might need to rely on external financing or cut back on other expenditures to sustain operations.

The other choices pertain to general cash flow scenarios. Assessing whether ABC's cash flow was positive overall or if the investing cash flow exceeded operating cash flow can lead to different conclusions based on financial metrics. Similarly, generating substantial finance cash flow does not directly reflect the overall health of cash flow or operational efficiency.

A negative free cash flow specifically indicates a lack of robust operational cash generation against capital investments, which is a critical factor when evaluating a company's financial stability and future potential.