Analyzing the Statement of Cash Flows May Help Investors and Analysts

Multiple Choice

Analyzing the statement of cash flows may help investors and analysts determine the financial health of a company. Which of the following signs below is NOT an indicator of a financially healthy company?

A) The company's operations are a major source (not a use) of cash.
B) The company's operations result in Net cash used by operating activities.
C) The company's investing activities include more purchases than sales of long-term assets.
D) The company's financing activities are not dominated by borrowing.