You can determine a company's cash situation by analyzing the cash flow statement. The cash fow 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. Several analysts use net cash flow that is calculated by subtracting noncash revenues from the net income and adding back noncash expenses. If a firm has a lot of net cash flow, does that mean the firm's balance sheet cash account must be high? No Yes Three categories of activities (operating, investing, and financing) genurate or use the cash flow in a company. In the following table, identify which type of ectivity is described by each statement. You can determine a company's cash situation by analyzing the cash flow statement. The cash fow 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. Several analysts use net cash flow that is calculated by subtracting noncash revenues from the net income and adding back noncash expenses. If a firm has a lot of net cash flow, does that mean the firm's balance sheet cash account must be high? No Yes Three categories of activities (operating, investing, and financing) genurate or use the cash flow in a company. In the following table, identify which type of ectivity is described by each statement