"Cash Is King" for all businesses You can determine a company's cash situation by analyzing the cash flow statement. The cash flow statement helps determine whether the company (1) is generating enough cash from its operations to make new investment and pay dividends or (2) will 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 firm's balance sheet cash account must be high? 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. During the last year, Turn Biscuit Co. generated exist1, 170 million in cash flow from operating activities and had negative cash flow generated from investing activities (-exist640 million). At the end of the first year, Turn Biscuit Co. had exist200 million in cash on its balance sheet, and the firm had exist355 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? exist468.75 million exist281.25 million -exist375.00 million -exist187.50 million