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please expalin the answer Question 3: Following is the Cash Conservation Equation, which always holds as an accounting equality. C-I= d+F Where C = Net
please expalin the answer
Question 3: Following is the Cash Conservation Equation, which always holds as an accounting equality. C-I= d+F Where C = Net cash flow from operation inflow), I = Net cash flow for investment (outflow), C - I= Free Cash Flow, d = Net payout to equity holders (cash dividends to common shareholders + acquisition of treasury stock - new share issues), F = Net cash flow to financial asset issuers and investors in debt securities. Requirement 1: Confirm if the Cash Conservation Equation holds for financial data below for the fiscal year of 2x10. (12 points) Cash inflow from sales $850 cash outflows for sales and general administration 300 income tax paid on operating income 50 . acquisition of operating fixed assets in cash 520 cash interest paid (after tax) 30 . cash outflow to redeem borrowings 150 . cash dividends to common shareholders 100 cash raised by borrowing new loans 300 Requirement 2: Based on your answer for the requirement A, what are characteristics of Dongguk Industry's cash flow of the year 2x10? (13 points) Step by Step Solution
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