Growth in operating, investing and financial activity- looking to the operating

Question

Growth in operating, investing and financial activity- looking to the operating activity of the AT & T there is change in operating activity of the organisation in the year 2014 is negative as profitability of the year 2014 get reduced which cause reduction in the cash flow from operating activity. But in the year 2015 cash flow from operating activity get increased by 14.49% which is considered as very good result for At&T.; In the same manner there is negative trend in the investing activity and financial activity as well. As cash flow from investing activity and financial activity getting reduced by 20.70% and 41.39% respectively. In the year 2015 cash flow from operating activity is increased which is positive sign for the overall profitability. In the same manner there investing activity also increases in the year 2015 so we can say that At&T; invest higher amount in the year 2015. But financial activity have negative impact on the organisation as At&T; issue high amount of debt in 2015 which cause increase in debt for the organisation.

Explanation / Answer

We have to find out that if there is net inflow or out flow

Now Cash flow from investing in 2015 >0 which is outflow

Now Cashflows from operating activityin 2015 has increase but we don't know if its is positive or not

But

Cash flow from financing is positive there is net inflow of cash which is inflow

So Net net there is inflow of cash because if company ahd enough cash it wont have raise money from financing activities

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.