Company A
Upon review of Company A's statement of cash flows, the following was noted:
$$\begin{array} { l r }
\text { Cash flows from operating activites } & \$ 30,000 \
\text { Cash flows from investing activities } & 80,000 \
\text { Cash flows from financing activites } & ( 130,000 )
\end{array}$$
-Refer to the figure Company A.From this information,which of the following statements reflects the company's activities?

Question

Company A
Upon review of Company A's statement of cash flows, the following was noted:
 $$\begin{array} { l r } 
\text { Cash flows from operating activites } & \$ 30,000 \
\text { Cash flows from investing activities } & 80,000 \
\text { Cash flows from financing activites } & ( 130,000 )
\end{array}$$
-Refer to the figure Company A.From this information,which of the following statements reflects the company's activities?

Quizplus · Accepted Answer

Company A's cash flows from operating activities is negative, indicating that it is using cash from operations. Additionally, the company's cash flows from investing activities show a negative cash outflow from the sale of property, plant, and equipment, indicating that it is selling long-term assets. Finally, the company's cash flows from financing activities show a positive cash inflow from issuance of long-term debt and a negative cash outflow from repayment of long-term debt, indicating that it is using cash from borrowing and long-term assets to pay back debt. Therefore, Choice A is the best answer.

Company a Upon Review of Company A's Statement of Cash

Company a
Upon Review of Company A's Statement of Cash