Problem
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described by each statement.
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Operating Activity
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Investing Activity
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Financing Activity
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D and W Co. sells its last season's inventory to a discount store.
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DigiInk Printing Co. buys new machinery to ramp up its production capacity.
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Yum Brands distributes dividends to its common stockholders for the first time.
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A company records a loss of $70,000 on the sale of its outdated inventory.
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During the last year, Globo-Chem Co. generated $702.00 million in cash flow from operating activities and had negative cash flow generated from investing activities (-384.00 million). At the end of the first year, Globo-Chem Co. had $120 million in cash on its balance sheet, and the firm had $380 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?