![jameslinimk](/avatars/22552.jpg)
jameslinimk
02.06.2021 •
Business
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement
Operating Activity Investing Activity Financing Activity A company records a loss of $70,000 on the sale of its outdated inventory D and W Co. sells its last season's inventory to a discount store. Digiink Printing co. buys new machinery to ramp up its production capacity. Yum Brands distributes dividends to its common stockholders for the first
During the last year, Globo-Chem Co. generated $1,053.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-576.00 million). At the end of the first year, Globo-Chem Co. had $180 million in cash on its balance sheet, and the firm had $280 million in cash at the end of the second year. What was the firm's cash flow (CF) due to financing activities in the second year?
A. $471.25 million
B. $5.189.50 million
C. $282.75 million
D. $-377.00 million
Solved
Show answers
More tips
- C Computers and Internet Protect Your Computer: How to Set a Password on Your Device...
- W Work and Career How to behave at an interview? Tips from an HR specialist...
- F Family and Home How to Keep Your Home Warm: Tips and Tricks...
- D Dating, Love, Relationships Does a Person s Character Depend on the Color of Their Eyes?...
- O Other Childhood Fears: What Many of Us Experienced...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
Answers on questions: Business
- B Business On december 1, 2018, garden products borrowed $92,000 on a 5%, 10-year note with annual installment payments of $9,200 plus interest due on december 1 of each subsequent...
- C Chemistry Consider the reaction below. HI + H2O → H30++ Which is an acid-conjugate base pair? O HI and H20 O H2O and Hž0+ OH30+ and I O HI and...
- G Geography What is the difference between the chemical composition of an igneous rock and the crystal texture of an igneous rock? what terms are used for each of these definitions?...
- E English Explain: ‘’poised beyond her years’’ and give an instance to support your answer. ‘Maria Sharapova”...
Ответ:
1. a. A company records a loss of $70,000 on the sale of its outdated inventory. OPERATING ACTIVITY.
Operating activities have to do with the day to day operations of the business.
b. D and W Co. sells its last season's inventory to a discount store. OPERATING ACTIVITY.
This is also a day-to-day operation of the business so it falls under operating activities.
c. DigiIink Printing co. buys new machinery to ramp up its production capacity. INVESTING ACTIVITY.
Investing activities have to do with the purchase and sale of capital assets such as financial assets in other companies or fixed assets. The machinery purchased here is a fixed asset so this will count as an investing activity.
d. Yum Brands distributes dividends to its common stockholders for the first. FINANCING ACTIVITY.
Financing activities have to do with the long term debt and equity of a company and this includes dividends so this falls under her.
2. Cashflow due to financing activities:
Cash Balance second year = Cash Balance first year + Cash Flows From Operating Activities + Cash Flows From Investing Activities + Cash Flows From Financing Activities
280 = 180 + 1,053 - 576 + Financing activities
280 = 657 + Financing activities
Financing cashflow = 280 - 657
= -$377 million
Ответ: