Q: "An old man on a subway wearing heavy layered clothing is reading a newspaper." Does this mean that "The man is reading."?
A: yes

Q: "People sitting down in a clothing store." Does this mean that "people sitting down protesting"?
A: it is not possible to tell

Q: "A big hound dog walking on a log in the woods." Does this mean that "A cat is sitting on a log."?
A: no

Q: "A woman is mopping the kitchen floor in a brightly colored, old-fashioned kitchen." Does this mean that "A woman is in a kitchen."?
A:
yes