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The accounting records of McKal Chocolates Ltd. reveal the following: (Click the icon to view the accounting records.) Which of the following statements is TRUE?
The accounting records of McKal Chocolates Ltd. reveal the following: (Click the icon to view the accounting records.) Which of the following statements is TRUE? A. A large investment was made this year that resulted in the overall cash flow for the year to be negative. B. McKal is not investing in the company's future. C. McKal's operations are not providing a positive cash flow which is concerning. D. McKal is borrowing cash to pay for their day to day operations. Accounting records Amortization Cash Sales Collection of accounts receivable $89,000 87,000 253,000 Payment of salaries & wages 85,000 Payment of accounts payable 46,950 Payment of income tax 8,000 oted Payment of dividends 10,000 Acquisition of a warehouse by issuance of common shares 135,900 Cash purchase of manufacturing equipment 195,000
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