Question

During the last year, Globo-Chem Co. generated $1,053.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-576.00 million). At the end of the first year, Globo-Chem Co. had $180 million in cash on its balance sheet, and the firm had $280 million in cash at the end of the second year. What was the firm’s cash flow (CF) due to financing activities in the second year?
a. 282.75 million
b. -188.50 million
c. 471.25 million
d. -377.00 million

Answer 1

Answer:

d. -377.00 million

Explanation:

The computation is shown below:

As we know that

Ending cash balance = Beginning cash balance + Cash flow from Operating Activities + Cash flow from Investing Activities + Cash flow from Financing Activities

$280 million = $180 million +$1053.00 million -$576.00 million + Cash flow from Financing Activities  

So, the cash flow from operating activities is -$377 million