Cash Flow Data for Interceptors, Inc

Cash Flow Data for Interceptors, Inc.

Based on the cash flow data in the table for Interceptors Inc., which of the following statements is (are) correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has been able to generate growing cash flows only by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.

A) I only
B) II and III only
C) II only
D) I and II only