Upon review of Jan’s Lakeside Resort statement of cash flows, the following was noted:
Cash flows from operating activities $ 35,000
Cash flows from investing activities75,000
Cash flows from financing activities(125,000)
From this information, the most likely explanation is that Jan is
a) using cash from operations and borrowing to purchase long-term assets.
b)using its profits to expand growth.
c)using cash from investors to provide for operations.
d) using cash from operations and selling long-term assets to pay back debt.
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