Analysis for Financial Management

Chapter 1, Question 14

12. Below are summary cash flow statements for three roughly equal- sized companies net cash flows from operating activities Net cash used in investing activities Net cash from financing activities Cash balance at beginning of year. (S millions) Net cash flows from operating activities Net cash used in investing activities Net cash from financing activities Cash balance at beginning of year (300) (900) 1,200 150 (300) (30) 210 150 300 (90) (240) 150 a. Calculate each company's cash balance at the end of the year b. Explain what might cause company C's net cash from financing activities to be negative. c. Looking at companies A and B, which company would you prefer to own? Why? d. Is company C's cash flow statement cause for any concern on the part of C's management or shareholders? Why or why not