Question

Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 4,650 Interest on investments 390 Sale of land 290 Sale of Rowdy's common stock 980 Issuance of debt securities 3,900 Cash paid for: Interest on debt $ 490 Income tax 270 Debt principal reduction 3,400 Purchase of equipment 7,800 Purchase of inventory 2,900 Dividends on common stock 770 Operating expenses 880 Rowdy's would report net cash inflows (outflows) from investing activities in the amount of:

Rowdy's Restaurants cash flow ($ in millions)

Cash received from:
Customers	$	2,700
Interest on investments		260
Sale of land		160
Sale of Rowdy's common stock		720
Issuance of debt securities		2,600
Cash paid for:
Interest on debt	$	360
Income tax		140
Debt principal reduction		2,100
Purchase of equipment		5,200
Purchase of inventory		1,600
Dividends on common stock		380
Operating expenses		620

Rowdy's would report net cash inflows (outflows) from financing activities in the amount of:

Answer 1

PARTICULARS	AMOUNT
CASH FLOW FROM INVESTING ACTIVITIES:
SALE OF LAND	290
PURCHASE OF EQUIPMENT	7800
NET CASH USED IN INVESTING ACTIVITIES	-7510
in investing activities mainly see of capital assets which are sale or purchase.
if capital asset is sale out then cash comes in so that amount is add
if capital asset is purchase out then cash goes out so that amount will be less.
CASH FLOW FROM FINANCING ACTIVITIES:	AMOUNT
SALE OF COMMON STOCK	720
ISSUACNE OF DEBT SECURITIES	2600
INTEREST ON DEBT	360
NET CASH FLOW FROM FINANCING ACTIVITIES	2960
in financing activities which activities are related with raising of finance and that sources are included in that
if the sale of debentures that will be less because cash is going out.
if raising of finance then there will be that amount will be added.