Statement of Cash Flows: Three Examples
Questions
I.
1. Major Sources
Major Uses
2. Is CFO>0?
CFO compared to Net
Income
3. CFO>Capex?
4. CFO>Capex + Dividends
5. Excess Cash
6. Source of cash to pay Capex and/or Dividends
7. Were working capital accounts other than cash and cash equivalents primary sources of cash or users of cash?
8.What other major items affected cash flows?
1991
1. Major sources of cash are cash received from customers and proceeds from the issuance of common stock. Major uses of cash are cash paid to suppliers and employees and increase of accounts receivables.
2. CFO is greater than zero but is smaller than net income by $2,404.
3. CFO is less than capital expenditures by $2,112(thousands).
4. CFO is not greater than capital expenditures plus dividends.
5. It is invested in capital expenditures and marketable securities.
6. The source of cash to pay capital expenditures came from the issuance of common stock.
7. The working capital accounts are cash sources.
8. Another major item affecting cash flows would be the loss of cash due to accounts receivable.
1990
1. The major sources of cash is cash from customers. The major use of cash is cash paid to suppliers and employees.
2. CFO is greater than zero and it is also larger than Net Income.
3. CFO is larger than capital expenditures by $2,400(thousands).
4. CFO is also less than capital expenditures plus dividends.
5. Excess cash is invested in capital expenditures.
6. The source of cash used to pay capital expenditures came from operating activities.
7. Working capital accounts are users of cash.
8. Another major item affecting the cash flow is net payments under working capital under line of credit.
1989
1. The major source of cash is cash from customers.
The major use of cash is cash paid to suppliers and employees.
2. CFO is greater than zero and it is also greater than Net
I.
1. Major Sources
Major Uses
2. Is CFO>0?
CFO compared to Net
Income
3. CFO>Capex?
4. CFO>Capex + Dividends
5. Excess Cash
6. Source of cash to pay Capex and/or Dividends
7. Were working capital accounts other than cash and cash equivalents primary sources of cash or users of cash?
8.What other major items affected cash flows?
1991
1. Major sources of cash are cash received from customers and proceeds from the issuance of common stock. Major uses of cash are cash paid to suppliers and employees and increase of accounts receivables.
2. CFO is greater than zero but is smaller than net income by $2,404.
3. CFO is less than capital expenditures by $2,112(thousands).
4. CFO is not greater than capital expenditures plus dividends.
5. It is invested in capital expenditures and marketable securities.
6. The source of cash to pay capital expenditures came from the issuance of common stock.
7. The working capital accounts are cash sources.
8. Another major item affecting cash flows would be the loss of cash due to accounts receivable.
1990
1. The major sources of cash is cash from customers. The major use of cash is cash paid to suppliers and employees.
2. CFO is greater than zero and it is also larger than Net Income.
3. CFO is larger than capital expenditures by $2,400(thousands).
4. CFO is also less than capital expenditures plus dividends.
5. Excess cash is invested in capital expenditures.
6. The source of cash used to pay capital expenditures came from operating activities.
7. Working capital accounts are users of cash.
8. Another major item affecting the cash flow is net payments under working capital under line of credit.
1989
1. The major source of cash is cash from customers.
The major use of cash is cash paid to suppliers and employees.
2. CFO is greater than zero and it is also greater than Net