Mack's Truck Stop
Upon reviewing Mack's Truck Stop's statement of cash flows, the following was noted:
$$\begin{array} { l r }
\text { Cash flows from operating activites } & \$ 15,000 \
\text { Cash flows from investing activities } & 70,000 \
\text { Cash flows from financing activites } & ( 50,000 )
\end{array}$$
-Refer to the figure Mack's Truck Stop.From this information,which of the following statements reflects the company's activities?

Question

Mack's Truck Stop
Upon reviewing Mack's Truck Stop's statement of cash flows, the following was noted:
 $$\begin{array} { l r } 
\text { Cash flows from operating activites } & \$ 15,000 \
\text { Cash flows from investing activities } & 70,000 \
\text { Cash flows from financing activites } & ( 50,000 )
\end{array}$$
-Refer to the figure Mack's Truck Stop.From this information,which of the following statements reflects the company's activities?

Quizplus · Accepted Answer

The statement shows that the company is generating negative cash flows from operating activities, using cash from operations and selling long-term assets to pay back debt. This indicates that the company is facing financial difficulties and is forced to use its assets to pay off its obligations. The statement does not provide evidence of borrowing to purchase long-term assets or using profits to expand growth, and there is no information on using cash from investors to provide for operations.

Mack's Truck Stop Upon Reviewing Mack's Truck Stop's Statement of Cash

Mack's Truck Stop
Upon Reviewing Mack's Truck Stop's Statement of Cash