You have been presented with the following summarized information from Dunvegan Ltd.’s cash flow statement:

Required:
Examine the cash flow pattern for Dunvegan Ltd. What does the pattern say about the situation that the company finds itself in? (That is, consider what type of circumstances would give rise to a situation in which CFO would have a net cash inflow and investing and financing activities would have net cash outflows.)

Transcribed Image Text:

Cash from operations $4,250,000 Cash from investing activities (2,450,000) Cash from financing activities (1,610,000)