Question
In 2018, Paula Company's statement of cash flows displayed the following pattern: Cash from operating activities: Negative Cash from investing activities: Negative Cash from financing
In 2018, Paula Company's statement of cash flows displayed the following pattern:
Cash from operating activities: | Negative |
Cash from investing activities: | Negative |
Cash from financing activities: | Negative |
Which one of the following statements BEST describes this cash flow pattern?
a. Paula Company is using its operating cash flow in order to get the cash to purchase new buildings.
b. Paula Company is using loans and operating cash flow in order to get the cash to purchase new buildings
c. Paula Company is selling buildings in order to repay long-term loans.
d. Paula Company is decreasing the balance in its cash account.
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As cash flow from all activites are negative therefore n...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
