4. Cash flows "Cash Is King" for all businesses You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $100 million in revenues. Does that mean it has generated a cash flow of $100 million? Yes NO 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 ACTIVILY A company reports a 10% increase in its accounts payable from the last month. A company buys some common stock in its supplier's firm with its extra cash. D and W Co. sells its last season's inventory to a discount store. Yum Co. uses cash to repurchase 10% of its common stock. During the last year, Globo-Chem Co. generated $1,170.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-540.00 million). At the end of the first year, Globo-Chem Co. had $200 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 $-400.00 million $500.00 million O $-200.00 million $300.00 million