Attempts: Keep the Highest: 2 4. Cash flows Aa Aa "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) wil need to generate cash by issuing new debt or selling its assets. If a firm has a lot of net cash flow, does that mean the fim's balance sheet cash account must be high? 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 Activity The Yum chain of restaurants conducts an initial public offering to raise funds for expansion Ruth Enterprises distributes a holiday bonus to all its employees. 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. Tum Biscuit Co. reported net sales of $150 million last year and generated a net income of $33 million. Last year's accounts receivable increased by $14 million, what is the maximum amount of cash that Tum Biscuit Co. received from sales last year? O $68 million $47 million O $136 million O $102 million