1. 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
Ruth Enterprises distributes a holiday bonus to all its employees.
Yum Co. uses cash to repurchase 10% of its common stock.
A company records a decrease in its total raw materials inventory from the previous year.
DigiInk Printing Co. buys new machinery to ramp up its production capacity.

2. During the last year, Tum Biscuit Co. generated $702 million in cash flow from operating activities and had negative cash flow generated from investing activities (-$384 million). At the end of the first year, Tum Biscuit Co. had $120 million in cash on its balance sheet, and the firm had $355 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?