You have been presented with the following summarized information from Peachland Ltd.’s cash flow statement:
Cash from operations................ $(2,625,000)
Cash from investing activities............ 3,980,000
Cash from financing activities........... (2,225,000)

Required:
Examine the cash flow pattern for Peachland 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 and financing activities would have net cash outflows and investing activities would have a net cash inflow.)