Which of the following statements is​ true? ​ (Select the best choice​ below.) A. Westlake Corporation generated a positive cash flow from operations ​(​), but it experienced a large reduction in cash ​(​). B. Westlake Corporation generated a negative cash flow from operations ​(​), but it was​ off-set by the sale of fixed assets ​(​). C. Westlake Corporation generated a positive cash flow from operations ​(​), but an even a greater amount was used to invest in fixed assets ​(​), resulting in a need to raise funds through financing activities. D. Westlake Corporation generated a positive cash flow from operations ​(​), but it was​ off-set by the negative cash flows from investing activities ​(

Respuesta :

Answer: C. Westlake Corporation generated a positive cash flow from operations ​, but an even a greater amount was used to invest in fixed assets ​, resulting in a need to raise funds through financing activities.

Explanation:

From the Cashflows of Westlake shown here, we see that the cashflow from operations is $592. This means that there was a positive cashflow from operations.

$1,066 was however used to invest in fixed assets which is higher than the cash generated from operating cashflow.

As a result, the company did not have enough cash to finance the fixed assets and so they raised money through financing activities by acquiring debt of $643.

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