Question: Vonage Holding Corporation provides telecommunication services u

Vonage Holding Corporation provides telecommunication services using voice over Internet technology. It began operations in 2002 and has never made a profit. By the end of 2008 it had cumulative losses of $1 billion. Vonage’s statements of cash flows for 2006, 2007, and 2008 follow.

a. This chapter explained that many companies that report net losses on their earnings statements report positive cash flows from operating activities. How does Vonage’s net income for each year compare to its cash flows from operating activities?
b. Based only on the information in the statements of cash flows, does Vonage appear to be improving its position in the telecommunications business? Explain.
c. In 2008 Vonage paid off over $250 million in debt. Where did it get the funds to repay this debt?
d. All things considered, based on the information in its statements of cash flows, did Vonage’s cash position appear to be improving ordeteriorating?
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