"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. Which of the following is true for the statement of cash flows? It reflects cash generated and used during the reporting period. It reflects revenues when earned. O 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 Fitzi Chemical Co. earns revenue from its cash receipts from royalties. The Yum chain of restaurants conducts an initial public offering to raise funds for expansion. A company records a loss of $70,000 on the sale of its outdated inventory. DigiInk Printing Co. buys new machinery to ramp up its production capacity. oooo o Len Corp. reported net sales of $200 million last year and generated a net income of $44 million. Last year's accounts receivable increased by $29 million. What is the maximum amount of cash that Len Corp. received from sales last year? $86 million $171 million $128 million $73 million O