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Financial Accounting - Assignment 1

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Financial Accounting - Assignment 1
Alpha Corporation
1991 1990 1989
Major sources of cash Sale of Assets and discontinued operations, Proceeds from long term debt,
Major uses of cash
CFO > NI?
Major reasons for difference between CFO and NI
Is CFO > Capex?
Is CFO > Capex + Dividends?
If CFO < Capex + Dividends, how did the company finance Capex + Dividends?
Trend in Net Income
Trend in CFO
Trend in Capex
Trend in major working capital accounts
Overall assessment of the financial strength of the company
CFO = Cash flow from operating activities; NI = Net Income; Capex = Capital expenditures, i.e. investments into long-lived assets
Major working capital accounts: Accounts Receivable, Inventory, Accounts Payable

Beta Corporation
1991 1990 1989
Major sources of cash
Major uses of cash
CFO > NI?
Major reasons for difference between CFO and NI
Is CFO > Capex?
Is CFO > Capex + Dividends?
If CFO < Capex + Dividends, how did the company finance Capex + Dividends?
Alpha Corporation
1991 1990 1989
Major sources of cash Sale of Assets and discontinued operations, Proceeds from long term debt,
Major uses of cash
CFO > NI?
Major reasons for difference between CFO and NI
Is CFO > Capex?
Is CFO > Capex + Dividends?
If CFO < Capex + Dividends, how did the company finance Capex + Dividends?
Trend in Net Income
Trend in CFO
Trend in Capex
Trend in major working capital accounts
Overall assessment of the financial strength of the company
CFO = Cash flow from operating activities; NI = Net Income; Capex = Capital expenditures, i.e. investments into long-lived assets
Major working capital accounts: Accounts Receivable, Inventory, Accounts Payable

Beta Corporation
1991 1990 1989
Major sources of cash
Major uses of cash
CFO > NI?
Major reasons for difference between CFO and NI
Is CFO > Capex?
Is CFO > Capex + Dividends?
If CFO < Capex + Dividends, how did the company
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