"Cash Is King" for all businesses You can determine a company's cash situation by analyzing the cash fow statement. The cash flow statement also helps detarimine athetfer tri company (1) is generating enough cash from its operations to make new imveitments and pay dividends ar (2) wilf need to generats cash by istuilfy new debt or seliling 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? Three categories of activitios (operating, investing, and financing) generate or use the carh flow in a company. In the following tabie, identify weint type of activity is described by eoch statement. Ch 03: Assignment - Financial Statements, Cast Flow, and Faxes Three catrgories of activities (oserating, investing, and finoncing) generate or use the cath fow in a compary. In the folowing uble, atriery which type of activity if described by each statement. Giobo-Chem Co. roported net sales of 1600 mallion last year and generated a net income of 1132.00 millon. Lat years acceunts rechivabie inornast by $17 millon. What is the maxomum amount of cash that Ciobo Chem Ca. recered from sales int year? \$149.00 milision 5583.00 million \$291.50 mallion $437.25 million