Consider the following statement of cash flows for Chicken Fil-A company.(in thousands)Cash flows from operating activities (CFO):20202019Net income$8. 100$6,800Adjustments to reconcile net income to CFO:Depreciation and amortizationDeferred income taxesOther non-cash items(Increase) decrease in operating assets and liabilities;3,1001,600900700(600)(700)Accounts receivable(7,800) (2,300)(2,100)(900)(1,300)InventoriesOther current assetsAccounts payableIncome taxes payableAccrued liabilities1,7002,0004,100(800)4001.70070013.800Net CFO1.500Cash flows from investing activitiesPurchases of property and equipmentNet cash used by investing activitiesCash flows from financing activities:Proceeds from common stock salesProceeds (repayments) of short-term debtRepayment of long-term debtNet cash provided by financing activities(800) (1,200)(80)(1.200)4,600100 (1,100)(2004.6004,700(3.3002005,300 12,80030,600 17.800.$35,900 S30.600Net increase in cashBeginning cash balanceEnding cash balance 3. While analyzing the cash flow statement of Chicken Fil-A company for the year2019, you concluded that: *A) The company generated 75% of cash from operations and 25% from sales ofcommon stock in 2019.B) The Company has spent some of the cash to purchase of property, plant andequipment to expand business.C) The company was able to reduce a large amount of its short-term & long term debtbut unable to pay any dividends to shareholdersD) All of the above.E) None of the above.Cear formPage 7 of 8

Name: Consider the following statement of cash flows for Chicken Fil-A comp
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Description: Consider the following statement of cash flows for Chicken Fil-A company.(in thousands)Cash flows from operating activities (CFO):20202019Net income$8. 100$6,800Adjustments to reconcile net income to CFO:Depreciation and amortizationDeferred income

Statement of cash flows: The statement of cash flows records all the sources and use of the cash in…

Answered: A) The company generated 75% of cash…

Business

Accounting

A) The company generated 75% of cash from operations and 25% from sales of common stock in 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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