The following are the comparative statements of cash flows for Yellow Spruce Incorporated.
a. Discuss the company’s ability to meet its non-operating needs for cash over these three years, and comment on the continuing nature of the major items that have appeared over this time period.
b. Comment on the changes in Yellow Spruce’s accounts receivable, accounts payable, and inventory levels over these three years.
c. How did Yellow Spruce finance its repayment of long-term debt and its acquisition of property, plant, and equipment and investments in 2016?
d. Describe how the company’s mix of long-term financing has changed during this three-year period, in terms of the proportion of debt versus equity. (Hint: Start by calculating the total amount of the increase or decrease in long-term debt, and comparing it with the total amount of the increase or decrease in shareholders’ equity.)

  • CreatedJune 11, 2015
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