Upon reviewing Mack's Truck Stop's Statement of Cash Flows,the following was noted:
$\begin{array}{llcc}
\text {Cadn flers from agereting artivities}& \$ 15,000\
\text {Cash flows from invertine activities}& 70,600\
\text {Cast flows from finanding activities}& ( 50,000 )\
\end{array}$
From this information,the most likely explanation is that this company is

Question

Upon reviewing Mack's Truck Stop's Statement of Cash Flows,the following was noted:
  $\begin{array}{llcc}
\text {Cadn flers from agereting artivities}&  \$ 15,000\
 \text {Cash flows from invertine activities}& 70,600\
 \text {Cast flows from finanding activities}& ( 50,000 )\
\end{array}$
 From this information,the most likely explanation is that this company is

Quizplus · Accepted Answer

The positive cash flow from operating activities indicates that the company is generating cash from its core business. However, the negative cash flow from financing activities suggests that the company is repaying debt. The positive cash flow from investing activities may indicate that the company is selling long-term assets to generate cash to pay back debt. Therefore, option A is the most likely explanation.

Upon Reviewing Mack's Truck Stop's Statement of Cash Flows,the Following