Upon review of Johnson's Statement of Cash Flows, the following was noted:
From this information, the most likely explanation is that Johnson 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 Johnson's Statement of Cash Flows, the following was noted: 
From this information, the most likely explanation is that Johnson 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 cash outflows from both operating activities and sale of long-term assets, which suggests that Johnson is using these funds to repay debt.

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