The following data were included in a recent annual report
The following data were included in a recent annual report of YUM, a wholesaler of grocery products. Amounts are in thousands.
Required:
(a) Why is a company’s net income typically less than its net cash flow from operating activities?
(b) Why do most companies, including YUM, typically have negative cash flows from investing activities?
(c) Over the three-year period, what type of activities was the largest source of funds for YUM? Do business executives want these activities to be their firm’s principal source of funds? Explain.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help