Krispy Kreme

FINANCIAL PLANNING
First Trimester, SY 2012-2013
FEU–MBA
Prof. Raymond Queddeng

THE THREE CASH FLOW ANALYSIS

Submitted by:
Group 1

Rebecca Capricho
Agnes Masiglat
Rosalia Simborio
Victorino Samarita
Edwin David

I. Statement of the Problem:

1. Determine for each of the years on the Consolidated Statements of Cash Flows of Alpha, Beta, and Gamma Corporation the following:

a. Each firm’s major sources and uses of cash b. Positive/Negative Variance between Cash flow from operations and net income. Major reasons for the variance. c. Was the firm able to generate enough cash from operations to pay all of its capital expenditures? d. Did the cash flow from operations cover both the capital expenditures and dividend payments, if any? e. If it did, how did it invest the excess cash? f. If not, the sources of cash to pay for the capital expenditures and/or dividends. g. Were the working capital (current asset and current liability) accounts other than cash and cash equivalents primarily sources of cash, users of cash? h. Other major items which affected cash flows 2. Firm’s Trend in the following:

a. Net Income b. Cash Flow from continuing operations c. Capital Expenditure d. Dividend e. Net Borrowing f. Working Capital Account

3. Assessment of the financial strength of the firm’s business

II. Assumptions:

1. Operating cash flows of the Three Examples were greater than zero and are adequate for important routine expenditures.
2. Direct Method of Cash Flow Statements were used in Alpha Corporation and Gamma Corporation while Indirect Method of Cash Flow Statement was used in Beta Corporation

III. Case Analysis:

1. Statement of Cash Flows of Alpha, Beta and Gamma Corporations: a. Major sources and uses of cash

Alpha Corporation | Beta