Net Cash Flow to the firm is also considered cash flow coming from _______________.a.Operating activitiesb.Invesying activitiesc.Equity activitiesd.Financing activities
Question
Net Cash Flow to the firm is also considered cash flow coming from _______________.a.Operating activitiesb.Invesying activitiesc.Equity activitiesd.Financing activities
Solution
Net Cash Flow to the firm is considered cash flow coming from:
a. Operating activities: This includes the cash flow generated from the core business operations of the firm. It includes cash received from customers, cash paid to suppliers, cash paid to employees, etc.
b. Investing activities: This includes the cash flow generated from the purchase and sale of long-term assets like property, plant, equipment, and investments in other firms.
d. Financing activities: This includes the cash flow generated from the issuance and repayment of the firm's debt and equity, such as issuing stocks, paying dividends, or borrowing from a bank.
So, the answer is all of the above - Operating activities, Investing activities, and Financing activities.
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