Question

What were the​ company's cumulative earnings over these four​ quarters? What were its cumulative cash flows from operating​ activities? b. What fraction of the cash from operating activities was used for investment over the four​ quarters? c. What fraction of the cash from operating activities was used for financing activities over the four​ quarters?

Answer 1

Answer: The answers are given below

Explanation:

A diagram relating to the question was gotten and the answers are provided below.

a. Cumulative earnings over four quarters will be:

= 276625 + 229066 + 194168 + 218413 = $918,272 (in $000)

Cumulative cash flow from the operating activities will be:

= 227333 + 13837 + 717808 + 254475

= $1,185,779 (in $000)

b. Total cash flows from the investing activities will be:

= 196,746 + 35,305 + 251,178 + 96,973 = $580,202 (in $000)

The fraction used in the investment of cash flow from the operating activities will be:

= (580202 ÷ 1185779) × 100

= 48.93%

c. Total cash flows from the financing activities will be:

= 462948 + 13401 + 526169 + 96143

= $172,768 (in $000)

The fraction used in the financing of cash flow from the operating activities will be:

= (172768/1185779) × 100

= 14.57%