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Upon Review of Mack's Statement of Cash Flows, the Following

Question 75

Multiple Choice

Upon review of Mack's statement of cash flows, the following was noted:  Cash flows from operating activities $30,000 Cash flows from investing activities 45,000 Cash flows from financing activaties (40,000) \begin{array}{ll}\text { Cash flows from operating activities } & \$ 30,000 \\\text { Cash flows from investing activities } & 45,000 \\\text { Cash flows from financing activaties } & (40,000) \end{array} From this information, the most likely explanation is that Mack is:


A) using cash from operations and selling long-term assets to pay back debt.
B) using cash from operations and borrowing to purchase long-term assets.
C) using its profits to expand growth.
D) using cash from investors to provide for operations.

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