Upon review of Young's Garden Center statement of cash flows, the following was noted: $\begin{array}{lr}
\text { Cash flows from operating activities } & \$ 15,000 \
\text { Cash flows from investing activities } & 80,000 \
\text { Cash flows from financing activities } & (60,000)
\end{array}$ From this information, the most likely explanation is that Young's is

Question

Quizplus · Accepted Answer

The positive cash flow from operating activities ($15,000) and the positive cash flow from investing activities ($80,000) suggest that the company is generating cash through its operations and possibly selling long-term assets. The negative cash flow from financing activities (-$60,000) indicates that the company is paying back debt or returning capital to investors, supporting the explanation in choice A.

Upon Review of Young's Garden Center Statement of Cash Flows