Cash flows from operating activities     $60,000      Cash flows from investing activities     (125,000)      Cash flows from financing activities     115,000 From this information, the most likely explanation is that this company is  a using cash from operations and borrowing to purchase long-term assets. b using cash from operations and selling long-term assets to pay back debt. c using its profits to expand growth. d using cash from investors to provide for operations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Upon reviewing Myert Company's statement of cash flows, the following was noted:

     Cash flows from operating activities     $60,000

     Cash flows from investing activities     (125,000)

     Cash flows from financing activities     115,000

From this information, the most likely explanation is that this company is 

a
using cash from operations and borrowing to purchase long-term assets.
b
using cash from operations and selling long-term assets to pay back debt.
c
using its profits to expand growth.
d
using cash from investors to provide for operations.
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