Which of the following would be valid conclusions from an analysis of the cash flow statement for Telefónica Group presented in Exhibit 3?

A. The primary use of cash is financing activities.
B. The primary source of cash is operating activities.
C. Telefónica classifies interest received as an operating activity.

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EXHIBIT 3 Telefnica Group Consolidated Statement of Cash Flows ( millions) For the years ended 31 December 2009 Cash flows from operating activities Cash received from customers Cash paid to suppliers and employees Dividends received Net interest and other financial expenses paid Taxes paid Net cash from operating activities Cash flows from investing activities Proceeds on disposals of property, plant and equipment and intangible assets Payments on investments in property, plant and equipment and intangible assets Proceeds on disposals of companies, net of cash and cash equivalents disposed 67,358 (46,198) 100 (2,170) (2,942) 16,148 242 2008 34 69,060 (48,500) 276 (7,593) (7,889) 113. (2,894) (3,221) (1,413) (1,457) 16,366 15,551 2007 686 67,129 (47,024) 124 198 (7,274) 5,346