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While Analyzing Tektron's Statement of Cash Flows, You Note That

Question 20

Multiple Choice

While analyzing Tektron's statement of cash flows, you note that there was a net cash outflow from investing activities of $87,000, while cash provided by operations was$95,000. This means that:


A) Tektron only had a net increase in cash of $7,000.
B) Tektron is spending too much on investing activities.
C) The next step in the analysis is to examine the schedule of noncash financing and investing activities.
D) The next step in the analysis is to examine the financing section and the schedule of noncash financing and investing activities.
E) The next step in the analysis is to examine the financing activities section.

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