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

question 40

Multiple Choice

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.

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Definitions:

Company

A legal entity formed by a group of individuals to engage in and operate a business commercially or industrially.

Technological Innovation

The introduction of new technologies or the improvement of existing technologies to create new products, services, or processes.

Cloud Source LLC

Assuming it’s a real entity, it would refer to a company specializing in providing cloud-based solutions and services. If not, then NO.

Distribution Inc.

A fictitious or placeholder name that typically refers to a company specializing in the supply or dissemination of goods or services.