Question

Kansai Electric supplies power to an area of Japan that includes Osaka and Kyoto. Its operating revenues are nearly ¥2.8 trillion (about $33 billion in U.S. dollars), and its assets are more than ¥7.3 trillion. The bottom of Kansai Electric’s 2011 cash flow statement contained the following (in millions of Japanese yen, ¥):
Net cash provided by operating, investing, and financing activities ... ¥ 18,228
Effect of exchange rate changes on cash and cash equivalents ..... (303)
Net increase in cash and cash equivalents ............. 17,925
Cash and cash equivalents, beginning of year ............ 77,525
Cash and cash equivalents, end of year ............... ¥ 95,450
Is the effect of exchange rate changes on cash and cash equivalents a cash flow? Explain why Kansai Electric included it on the company’s cash flow statement.



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  • CreatedFebruary 20, 2015
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