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3 years ago

Rowdy's Restaurants cash flow ($ in millions)

Business

2 answers:

wolverine [178]3 years ago

6 0

Answer:

$460

Explanation:

Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.

Net Cash flow is the net of receipts and Payment.

Following are the operating cash flows.

Cash received from:

Customers $3,600

Cash inflow $3,600

Cash paid for:

Income tax $200

Purchase of inventory $2,200

Operating expenses $740

Cash outflow ($3,140)

Net Cash Flow $460 

All of the following cash flows relates to the Investing and Financing cash flows.

Cash Received

Interest on investments 320

Sale of land 220

Sale of Rowdy's capital stock 840

Issuance of debt securities 3,200

Payments

Interest on debt $ 420

Debt principal reduction 2,700

Purchase of equipment 6,400

Dividends on capital stock 560

Rudiy273 years ago

3 0

Answer:

Rowdy's would report net cash inflows (outflows) from operating activities in the amount of $460.

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

Hence, net cash inflows (outflows) from operating activities

= $3600 - $200 - $2200 - $740

= $460

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