Upon review of Jan's Lakeside Resort statement of cash flows, the following was noted: From this information, the most likely explanation is that Jan 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.

Question

Upon review of Jan's Lakeside Resort statement of cash flows, the following was noted:  From this information, the most likely explanation is that Jan 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.

Quizplus · Accepted Answer

According to the statement of cash flows, Jan's Lakeside Resort has negative cash flow from operations, indicating that it is using cash to fund its daily operations. It also shows that the resort sold long-term assets to generate cash, which suggests it is using these funds to pay back debt. Therefore, the most likely explanation is that Jan is using cash from operations and selling long-term assets to pay back debt.

Upon Review of Jan's Lakeside Resort Statement of Cash Flows