Frank Costas has completed a roundup of reports and prepared the statement of cash flows for Hackerz Lite, Incorporated. He started

with a net income of $16$ million from the income statement to derive the operating cash flow of $38$ million, included a computer

factory they financed in cash flow from financing $($CFF$),$ which totaled out CFF at $2$ million, and calculated cash flow from investing

$($CFI$)$ after a stock repurchase to be $-4$ million. His final report had a net cash increase of $36$ million. Is this method and amount correct

and why?

No$,$ he has mixed up the factory, which should be in CFI, and the stock repurchase which should be in CFF$.$

No$,$ repurchased stock is a CFO activity.

Yes, he used all the proper components to calculate net cash flow.

No$,$ he did not include net income in his calculation.