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

Question 70

Multiple Choice

A review of Young's Garden's Center statement of cash flows showed the following:  Cash flows from operating activities $15,000 Cash flows from investing activities 80,000 Cash flows from financing activities (60,000) \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


A) using cash from operations and selling long-term assets to pay back debt.
B) using cash from operations and borrowing to purchase long-term assets.
C) using its profits to expand growth.
D) using cash from investors to provide for operations.

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