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

Required:
Examine the cash flow pattern for Inverness 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 and financing activities would have net cash inflows and investing activities would have a net cash outflow.)

Transcribed Image Text:

Cash from operations $5,354,000 Cash from investing activities Cash from financing activities (1,580,000) 2,500,000