Upon review of Johnson's Statement of Cash Flows,the following was noted: From this information,the most likely explanation is that Johnson 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 Johnson's Statement of Cash Flows,the following was noted:  From this information,the most likely explanation is that Johnson 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

The statement of cash flows indicates that Johnson is using cash from operations and selling long-term assets to pay back debt. This is demonstrated by the negative cash flow from financing activities and the positive cash flow from operating activities and investing activities, specifically the proceeds from the sale of long-term assets.

Upon Review of Johnson's Statement of Cash Flows,the Following Was