1..The Cash Flow Statement is one of the four basic financial statements. Define the objective in preparing this statement and discuss some of the types of questions that can be addressed using its content.

Geneco Inc. is an independent energy company that engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids in Mexico. Geneco's cash flow statement for 2019 (in millions of pesos) is found below:

Net incomeP2,800

Depreciation expense2,400

Changes in working capital(600)

Cash from operating activitiesP4,600

Capital expendituresP(5,000)

Cash from investing activitiesP5,000

Total dividends paid(200)

Issuance (retirement) of stock50

Issuance (retirement) of debt400

Cash from financing activities250

Net change in cashP (150)

Answer the following questions:

a. How much cash did the firm generate from its operations over the year? Describe what happened to the firm's net working capital over the year.

b. How much cash dividend did the firm invest in new capital expenditures and other investing activities in 2019?

c. What sources of financing did the company use to raise money during 2019?

d. How did the firm's cash balance change during 2019?