Question

In its fiscal 2016 balance sheet, JetBlue Airways Corporation, reported cash of $443 million at year-end. The statement of cash flows reports that cash increased by $115 million during the year and that net cash flow from operating activities was $1,632 million. What was the cash flow from investing activities during the year?
A) $533 million cash outflow

B) $715 million cash inflow

C) $533 million cash inflow

D) There is not enough information to determine the amount.

Answer 1

Answer:

The correct option is (D)

Explanation:

Cash flow statement comprises cash outflow or inflow from operating activities, investing activities and financing activities. increase in cash represents that inflow from these activities were more than outflows.

Beginning cash balance plus increase in cash gives closing cash balance. With closing balance and increase in cash, beginning balance can be computed. But, cash flow from investing activities cannot be computed as cash flow from financing activities is not given. There are two unknown variables.

Cash flow from operating activities and increase in cash will not help in computing cash flow from investing activities

Therefore, information provided is not sufficient to compute cash flow from investing activities.