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Natural Market's Statement of Cash Flows Showed the Following Totals

Question 57

Multiple Choice

Natural Market's statement of cash flows showed the following totals:  Cash for operating activities ($45,000)  Cash from financing activities 32,000 Cash from investing activities 28,000\begin{array}{lc}\text { Cash for operating activities } & (\$ 45,000) \\\text { Cash from financing activities } & 32,000 \\\text { Cash from investing activities } & 28,000\end{array} Which statement most likely explains what occurred during the year?


A) Natural Market is using cash from operations and borrowing money from the bank to buy long-term assets.
B) Natural Market is using its profits in order to sell plant assets and repay debt.
C) Natural Market is using cash from the sale of long-term assets to fund its operations and to repay debt.
D) Natural Market is selling long-term assets and borrowing cash to fund operations.

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