Q: "People are sitting on bleachers waving American flags." Does this mean that "The people are very patriotic."?
A: it is not possible to tell

Q: "A lady standing in front of a lot of elementary school aged children who are sitting on the floor." Does this mean that "There is only one child present."?
A: no

Q: "A dog stands on the beach with a large rock behind him." Does this mean that "A dog is on the beach."?
A: yes

Q: "Three people are standing in the snow preparing an ice fishing boat." Does this mean that "Three friends go ice fishing in January."?
A:
it is not possible to tell