History Bookmarks People Window Help Studex . MindTap-CK Aplia: Stude Aplia: Ass
ID: 2810195 • Letter: H
Question
History Bookmarks People Window Help Studex . MindTap-CK Aplia: Stude Aplia: Assig × es.aplia.com/at/servlet/quiz?ctx-vpandey-0050&quiz action Aplia sessio x New Tab -takeQuizquiz probGuid-QNAPCOA801010000004 D Yahoo D Welcome untitled folder Apple DiCloud Facebook D Twitter D wikipedia 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 Yum Brands distributes dividends to its common stockholders for the first time. A pharmaceutical company buys marketing rights to sell a drug excusively in East Asian markets. Ruth Enterprises distributes a holiday bonus to all its employees. A company reports a 10% increase in its accounts payable from the last month. During the last year, Len Corp. generated $819 million in cash flow from operating activities and had negative cash flow generated from investing activities (-$448 million). At the end of the first year, Len Corp. had $140 million in cash on its balance sheet, and the firm had $330 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? O $226.25 million O -$181.00 million O -$90.50 million O $135.75 million MacBook ProExplanation / Answer
Answer:
Yum brand distributes dividends to its common stockholders for the first time. it is a financing activity because dividends and stockholders are financing activities of business.
A pharmaceutical company buys marketing rights to sell a drug exclusively in east asian markets . it is investing activity. purchases and sales of assets for business purpose is investing activities.
Ruth enterprises distributes a holiday bonus to all its employees. it is operating activity. bonus is operating expense. it comes under income statement.
A company reports a 10% increase in its accounts payable from the last month. it is operating activity , increase in accounts payable comes in changes in working capital. increase in accounts payable is deduct from the net income of operating activities.
Answer:
Computation of amount due to financing activities:
Cash flows from operating activities + investing activities + financing activities = Net increase in cash
$819 + ($448) + financing activities = ($330 millions - $140 millions)
$371 + financing activities = $190 millions
Financing activities = - $371 + $190
= - $181 millions.
Cash due to financing activities = -$181 millions.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.