The cash flow from operations and cash flow from investing are both positive. Which of the following best describes the situation?

	2004	2005
Net income	$189	$170
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	201	173
Deferred income taxes	14	(20)
Restructuring charges	80	90
Accounts receivable	30	20
Inventory	(30)	50
Current liabilities	10	30
Cash flow from operations	494	513
Sale of equipment	200	300
Purchase of equipment	(130)	(120)
Cash flow from investing	70	180
Dividends	(120)	(130)
Long-term debt	(440)	(440)
Cash flow from financing	(560)	(570

A. The cash flow statement would indicate there are no reasons for concern. B. Repayment of long-term debt indicates the company is becoming more profitable. C. The company appears to be liquidating assets of the company that may affect future profitability. D. Increased operating and investing cash flows in 2005, relative to 2004, indicate increased profitability in 2005.