$3$ Jpon review of Frierend Inc.$\text{'}$s Statement of Cash Flows, the following was noted:

Cash flows used by operating activities

Cash flows from investing activities

$-$$$35,000$

Cash flows from financing activities

$-$$$120,000$

$$162,000$

From this information, the most likely explanation is that Frierend is:

a$.$ Using cash from operations to purchase assets and pay off bonds payable.

b$.$ Using cash from financing and selling assets to cover cash flows losses from operating activities

c$.$ Using cash from operations and selling assets to pay off loans.

d$.$ Using cash from creditors to purchase additional LT assets and cover losses from operating acti