You have been presented with the following summarized information from Rimouski Ltd.’s cash flow statement:
Cash from operations .............. $(3,250,000)
Cash from investing activities .......... 1,500,000
Cash from financing activities .......... 2,000,000

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