Listed below are statements of cash flows for three companies in millions of dollars. Each company went public in 2017 and then began operations by acquiring a number of restaurants. Despite the identical incomes and cash flows of each company, there are some differences in the way that each company manages its cash flows.

Instructions
(a) Which company may have too much debt?
(b) Which company has some problems with its operating cash flows? What is causing these problems?
(c) Why do you think that C Limited had to pay down its bank loans so much in 2018?
(d) If you were a shareholder wanting to receive dividends but were not too interested in owning shares for a long time, which company's shares might you consider buying?
(e) Which company is the most committed to growth? Do you think that this company is growing too quickly?
(f) Which company has the highest free cash flow in 2018?
(g) Based on the above, which company would you like to own or lend cash to?

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A Limited B Limited C Limited 20182017 2018 2017 20182017 Operating activities Net income $ 800 $ 800 $ 800$ $800 800 800 Depreciation 300200 220200 210200 Loss (gain) on disposal of non-current assets (10)-0(20) 0 1,090 1,000 1,000 1,000 1,080 1,000 (50) (80) (20) (80) (150) (80) (50) (50) (10) (50) (200)(50) 60 1,030 930 980 930 820 930 Increase in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by operating activities Investing activities Proceeds from disposal of property, plant, and equipment Purchases of property, plant, and equipment Net cash used by investing activities 40 60 10 60 90 0 0 -0- 120 (2,350) (2,000) (830) (2,0oo) (430) (2,000) (2,300) (2,000) (780) (2,000) (310) (2,000) Financing activities Bank loans received Bank loan payments made Common share sale proceeds Dividends paid Net cash provided (used) by financing 0- 700 0- 0 1,050 (50) (50) 0--0 (425) (115) 1,500 5001,200-0200 (100) (20) (120) (70) 5)(5) 1,130 1,350 1,130 (120) 1,130 (430) activities Net increase in cash Cash, January 1 Cash, December 31 80 60 80 60 80 60 60 - 60 - 60 - $140 $60 $140 $60 $140 60