Upon review of Mack's statement of cash flows, the following was noted: From this information, the most likely explanation is that Mack 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.

Question

Upon review of Mack's statement of cash flows, the following was noted:  From this information, the most likely explanation is that Mack 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.

Quizplus · Accepted Answer

The statement shows that Mack is using cash from operations and selling long-term assets to pay back debt. This indicates that Mack is using its existing resources to improve its financial position and pay off its obligations.

Upon Review of Mack's Statement of Cash Flows, the Following