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In 2012, Paula Company's Statement of Cash Flows Displayed the Following

Question 97

Multiple Choice

In 2012, Paula Company's statement of cash flows displayed the following pattern: In 2012, Paula Company's statement of cash flows displayed the following pattern:   Which one of the following statements BEST describes this cash flow pattern? A)  Paula Company is using loans and operating cash flow in order to get the cash to purchase new buildings. B)  Paula Company is selling buildings in order to repay long-term loans. C)  Paula Company is using its operating cash flow in order to get the cash to purchase new buildings. D)  Paula Company is decreasing the balance in its cash account. Which one of the following statements BEST describes this cash flow pattern?


A) Paula Company is using loans and operating cash flow in order to get the cash to purchase new buildings.
B) Paula Company is selling buildings in order to repay long-term loans.
C) Paula Company is using its operating cash flow in order to get the cash to purchase new buildings.
D) Paula Company is decreasing the balance in its cash account.

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