Cash Flows Three categories of activities (operating, investing, and financing)

Question

Cash Flows

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 Operating Activity Investing Activity Financing Activity A company records a loss of $70,000 on the sale of its outdated inventory Yum Co. uses cash to repurchase 10% of its common stock. A company buys some common stock in its supplier's firm with its extra cash Fitzi Chemical Co. earns revenue from its cash receipts from royalties. During the last year, Dual Purposes Products Co. 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, Dual Purposes Products Co. had $140 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? O -$231.00 million O-$115.50 million O $173.25 million O $288.75 million

Explanation / Answer

1)

operating activity

financing activity

investing activity

operating activity

2)

cash flow due to financing activities

=(280-140)-819-(-448)

=-231.00 million

the above is answer..

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