Following are questions related to Groupon's 2018 10-K.Pull the 10-K from the SEC website and respond to the following questions.

1.What is Groupon's cash flow from operating activities? What is its accrual basis net income/loss? Be sure to label the cash flow balance as an inflow or outflow and accrual basis number as an income or loss. Opinion question: Do you think Groupon's net earnings are well-supported by cash flows? Explain your response. (4 points)

What is Groupon's cash flow from operating activities? Cash from operating activities 190,855

What is its accrual basis net income/loss? (11,079)

I think that Group is having net loss with a positive cash flow from the operations. In my opinion, their net earnings are not supported by their cash flows well.

2.Which three items contributed the most to the difference in the figures above (the difference between net income and cash flows from operating activities)? Do the significant balances associated with the items you identified appear reasonable based on your understanding of Groupon's business? Please explain. (4 points)

Accrued Merchant and supplier payables. $651,781

Cash flows from operating activities190,855-Net Income 1,988=188867

3.Estimate Groupon's free cash flow using the approach we used in class. Is their free cash flow positive or negative? What did Groupon do with its free cash flow?

4.Groupon calculates and discloses free cash flow using a slightly different method as the approach we used in class.What is the amount of free cash flow that Groupon discloses in the 10-K?How is this calculation different than the one we used in class?Opinion question: which calculation do you think is better?

5.Examine Groupon's income statements for the last three years. Identify one item you think is a potential temporary (i.e. one-time) gain or loss that you might want to investigate further.

6.Examine Groupon's cash flow statement for 2018. Identify one additional item (different from your answer in question #4) you think is a potential temporary (i.e. one-time) gain or loss that you might want to investigate further.