DeliverItNow is a start-up operating in mid to large cities in the Eastern United States that coordinates food deliveries to businesses and individuals in a limited geographic area. Here is their Cash Flow Statement for the most recent quarter:1. What is the Cash Flow from Operating Activities for DeliverItNow for the last 3 months?2.Which of the following changes would be true about DeliverItNow?:Their revenues are negativeTheir revenues are greater than their expensesTheir expenses are greater than their revenuesOperations are generating positive cash flowNone of the above.3. What is DeliverItNow's Cash Flow from Investing Activities?4. What is DeliverItNow's Net Cash Flow?5. If DeliverItNow's Chief Financial Officer (CFO) was concerned about the company's negative cash flow and decided to sell shares of stock to make up the difference, how many shares would the company need to sell at a cost of $100 / share?6. Why would a start-up company like DeliverItNow be likely to have negative net cash flow without issuing stock or borrowing funds?:Many start-ups have higher expenses than revenues at firstHigher growth companies are likely to have increases in accounts receivable and inventoryThey are more likely to be making capital expendituresAll of the aboveNone of the above. ### Cash Flow Statement For 3 Months Ending June 30, 2015 ($000)**Net Income**: -$284 **Depreciation**: 300 **Changes in Accounts Receivable**: -150 **Changes in Inventory**: -200 **Cash Flow (Operating Activities)**: ###**Capital Expenditures**: -450 **Investments**: $20 **Cash Flow (Investing Activities)**: ###**Dividends Paid**: 0 **Sale/Purchase of Stock**: 0 **Net Borrowings**: 200 **Cash Flow (Financing Activities)**: 200**Net Cash Flow**: ###### DescriptionThis Cash Flow Statement presents the detailed financial activities over a three-month period ending on June 30, 2015, specifically denoted in thousands of dollars ($000).Key components are:1. **Operating Activities**: - *Net Income*: Indicates the net earnings during the period, showing a loss of $284,000. - *Adjustments*: Depreciation, which is the decrease in value of assets, accounts for $300,000. Changes in accounts receivable and inventory contribute negative amounts of $150,000 and $200,000 respectively. 2. **Investing Activities**: - Captures expenditures on long-term assets like capital expenditures ($450,000) and smaller investments ($20,000).3. **Financing Activities**: - Details the cash provided through borrowing ($200,000) with no dividends paid or stock transactions.The placeholders (###) indicate sections requiring additional data computation to derive the totals for cash flow from operating and investing activities, as well as the net cash flow.

Cash flow statement is prepared to report the cash activity of the firm during the accounting…

DeliverItNow is a start-up operating in mid to large cities in the Eastern United States that coordinates food deliveries to businesses and individuals in a limited geographic area. Here is their Cash Flow Statement for the most recent quarter: 1. What is the Cash Flow from Operating Activities for DeliverItNow for the last 3 months? 2.Which of the following changes would be true about DeliverItNow?: Their revenues are negative Their revenues are greater than their expenses Their expenses are greater than their revenues Operations are generating positive cash flow None of the above. 3. What is DeliverItNow's Cash Flow from Investing Activities? 4. What is DeliverItNow's Net Cash Flow? 5. If DeliverItNow's Chief Financial Officer (CFO) was concerned about the company's negative cash flow and decided to sell shares of stock to make up the difference, how many shares would the company need to sell at a cost of $100 / share? 6. Why would a start-up company like DeliverItNow be likely to have negative net cash flow without issuing stock or borrowing funds?: Many start-ups have higher expenses than revenues at first Higher growth companies are likely to have increases in accounts receivable and inventory They are more likely to be making capital expenditures All of the above None of the above.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter16: Statement Of Cash Flows: Another Look

Section: Chapter Questions

Problem 18P

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DeliverItNow is a start-up operating in mid to large cities in the Eastern United States that coordinates food deliveries to businesses and individuals in a limited geographic area. Here is their Cash Flow Statement for the most recent quarter:

1. What is the Cash Flow from Operating Activities for DeliverItNow for the last 3 months?

2.Which of the following changes would be true about DeliverItNow?:

Their revenues are negative
Their revenues are greater than their expenses
Their expenses are greater than their revenues
Operations are generating positive cash flow
None of the above.

3. What is DeliverItNow's Cash Flow from Investing Activities?

4. What is DeliverItNow's Net Cash Flow?

5. If DeliverItNow's Chief Financial Officer (CFO) was concerned about the company's negative cash flow and decided to sell shares of stock to make up the difference, how many shares would the company need to sell at a cost of $100 / share?

6. Why would a start-up company like DeliverItNow be likely to have negative net cash flow without issuing stock or borrowing funds?:

Many start-ups have higher expenses than revenues at first
Higher growth companies are likely to have increases in accounts receivable and inventory
They are more likely to be making capital expenditures
All of the above
None of the above.

### Cash Flow Statement For 3 Months Ending June 30, 2015 ($000)

**Net Income**: -$284
**Depreciation**: 300
**Changes in Accounts Receivable**: -150
**Changes in Inventory**: -200

**Cash Flow (Operating Activities)**: ###

**Capital Expenditures**: -450
**Investments**: $20

**Cash Flow (Investing Activities)**: ###

**Dividends Paid**: 0
**Sale/Purchase of Stock**: 0
**Net Borrowings**: 200

**Cash Flow (Financing Activities)**: 200

**Net Cash Flow**: ###

### Description

This Cash Flow Statement presents the detailed financial activities over a three-month period ending on June 30, 2015, specifically denoted in thousands of dollars ($000).

Key components are:

1. **Operating Activities**:
- *Net Income*: Indicates the net earnings during the period, showing a loss of $284,000.
- *Adjustments*: Depreciation, which is the decrease in value of assets, accounts for $300,000. Changes in accounts receivable and inventory contribute negative amounts of $150,000 and $200,000 respectively.

2. **Investing Activities**:
- Captures expenditures on long-term assets like capital expenditures ($450,000) and smaller investments ($20,000).

3. **Financing Activities**:
- Details the cash provided through borrowing ($200,000) with no dividends paid or stock transactions.

The placeholders (###) indicate sections requiring additional data computation to derive the totals for cash flow from operating and investing activities, as well as the net cash flow.

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