Asked by Larry Dowling on May 09, 2024
Verified
During 2019,Tommy's Toys reported the following: short-term borrowings of $419 million;long-term borrowings of $147 million;long-term debt repayments of $45 million;interest paid,$128 million;treasury shares purchased $632 million;and exercise of stock options by employees,$2 million.
A.Calculate the net cash flow from financing activities during 2019.Show your work and details of whether an item is added or subtracted to arrive at your answer.
B.Is the net cash flow provided by,or used in,the financing activities? Briefly describe the reason for your answer.
Net Cash Flow
The amount of cash that is generated or lost by a business in a given period, considering cash inflows and outflows from operating, investing, and financing activities.
- Identify the financial activities' cash flow movements.
Verified Answer
MW
Madison WeinrichMay 10, 2024
Final Answer : 
B.The net cash flow is an outflow because more cash was spent than was received.When more cash is spent than received,net cash flow is used in financing activities.
B.The net cash flow is an outflow because more cash was spent than was received.When more cash is spent than received,net cash flow is used in financing activities.
Learning Objectives
- Identify the financial activities' cash flow movements.