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Alpha Corporation

1990
Disposal of assets: 242
Proceeds from discontinued operations:
407.3
CFO: 89.3

Items
Major sources

1991
Disposal of assets: 157 + 25.3
CFO: 125.2

Major Uses

Net repayment LTD: 82


CAPEX: 157.5

Repayment of LTD: 377.1


Repayment of STD: 222.6
CAPEX: 217.5

CAPEX: 363.1

CFO Vs. Net


Income (NI)

CFO: 125.2
NI: (377.9)
---------------------------------------------Depreciation: 168.4 + 41.4
Restructring: 135.5 16.6

CFO: 89.3
NI: (623.5)
----------------------------------------------Depreciation: 220.1 + 58.2
Restructuring: 384.1 119

CFO: 46.8
NI: (320.6)
----------------------------------------------Depreciation: 263.4 + 39.1
Restructuring: 125.3

CFO > CAPEX


Capex > Depn.
CFO > Capex +
dividend.
If no, source?
Dividend

No (125.2 vs 129.7+27.8)
No (157.5 vs 209.8)
No
Source: Sale of assets + LTD

No (89.3 vs 174.4+43.1)
No (217.5 vs 278.3)
No
Source: Sale of Assets + LTD

No (46.8 vs 303.6+59.5)
Yes (371.1 vs 302.5)
No
Source: LTD + STD

No

7.2

26.0

Excess cash
invested
Other major items
affecting cash
flows
TRENDS
Income
CFO
Capex
Dividends
Net borrowings
Working Capital

CFO < CFI. No excess cash

CFO < CFI. No excess cash

CFO < CFI. No excess cash

Sale of assets, payment of LTD

Payment of LTD, STD


Sale of Assets, Restructuring

CAPEX, LTD and STD

Loss has decreased


CFO has increased
CAPEX has decreased
No dividend
Net borrowing has decreased
Working Capital has increased

Loss has increased


CFO has increased
CAPEX has decreased
Dividend has decreased
Net borrowing has decreased
Working capital has increased

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II

III

1989
Proceeds from LTD: 213.3
Sale of assets: 94.1
CFO: 46.8

Overall assessment: Company has reduced long term debt and its working capital has increased steadily. Companys loss has decreased, however CFO and CAPEX
have also decreased. Company is trying to reduce debt at the expense of growth.

Beta Corporation
Items
Major sources

1991
CFO: $3,919
Issuance of common stock: $23,082

1990
CFO: $7,000

1989
CFO: $3,670
Proceeds of Subordinated Debt: $4,400
Issuance of common stock: $639

Major Uses

Capital Expenditure: $6,031


Marketable securities: $8,000
Payment of subordinated debt: $5,000

Capital Expenditure: $4,600


Repayment of loans/obligations: $2,339

Capital Expenditure: $3,650


Repayment of loans/obligations: $1,524

CFO Vs. Net


Income (NI)

CFO: $3,919
NI: $6,323
--------------------------------------------Depreciation and Amortization: $4,028
Increase in accounts receivable: $10,837
Increase in accounts payable and accrued
expenses: $5,657

CFO: $7,000
NI: $5,201
---------------------------------------------Depreciation and Amortization: $2,701

CFO: $3,670
NI: $417
----------------------------------------------Depreciation and amortization: $2,231
Increase in A/R and A/P: $1,550 and $2,067

CFO > CAPEX


Capex > Depn.
CFO > Capex +
dividend.
If no, source?
Dividend
Excess cash
invested

No. (CFO: $3,919 and CAPEX: $ 6,031)


Yes
No.
Source: Proceeds from issuance of common
stock
No
CFO < CFI hence no excess cash

Yes. (CFO: $7,000 and CAPEX: $4,600)


Yes
Yes

Yes. (CFO: $3,670 and CAPEX: $3,650)


Yes
Yes

No
CAPEX < CFO. Net payments under
working capital line of credit

No
CAPEX<CFO, Net payments under working
capital and equipment line of credit,

Other major items


affecting cash flow
TRENDS
Income
CFO
Capex
Dividends
Net borrowings
Working Capital

Repayment of debt: $1,154

Issuance of common stock: $141

Income has increased


CFO has reduced
CAPEX has increased
NA
Net borrowings have reduced
Change in WC: $6,796.
WC has increased

Income has increased


CFO has increased
CAPEX has increased
NA
Net borrowing have reduced
Change in WC: $1,367
WC has increased

4
II
III

Change in WC: $ (798)

Overall assessment: Companys income and CAPEX are increasing. Through issuance of common stock, company has reduced borrowing as well. For
2 out of 3 years, company has managed to compensate CAPEX from cash flow from operations. It proves, company is growing steadily and is in
healthy condition.

Gamma Corporation
Items
Major sources

1991
Treasury shares: 239,653
Issuance of Debt: 14,249
CFO: 1,040,901

1990
Treasury shares: 270,231
Issuance of Debt: 17,661
CFO: 1,434,074

1989
Treasury shares: 230,733
Issuance of Debt: 40,425
CFO: 1,479,391

Major Uses

CAPEX: 737,548 + 55782


Kienzle Acquisition: 233,261

CAPEX: 1,103,114 + 75,498

CAPEX: 1,290,662 + 67,624


Purchase of Treasury Shares: 814,958

CFO Vs. Net


Income (NI)

CFO: 1,040,901
NI: (617,427)
----------------------------------------------Depreciation: 828,560
Restructuring Reserve: 593,160

CFO: 1,434,074
NI: 74,393
----------------------------------------------Depreciation: 796,201
Restructuring Reserve: 443,544

CFO: 1,479,391
NI: 1,072,610
----------------------------------------------Depreciation: 686,738

CFO > CAPEX


Capex > Depn.
CFO > Capex +
dividend.
If no, source?
Dividend
Excess cash
invested
Other major items
affecting cash
flows
TRENDS
Income
CFO
Capex
Dividends
Net borrowings
Working Capital

Yes (1,040,901 vs 1,026,591)


No (793,330 vs 828,560)
Yes

Yes (1,434,074 vs 1,103,114)


Yes (1,103,114 vs 796,201)
Yes

Yes (1,479,391 vs 1,290,662)


Yes (1,290,662 vs 686,738)
Yes

No
Yes, $70,092

No
Yes, $406,449

No
Yes, $256,353

Depreciation & Amortization


Kienzel Business acquisition
Restructuring Expenses

Purchase of treasury shares,


CAPEX,
Restructuring Expenses

Purchase of treasury shares


CAPEX

Income has decreased.


CFO has decreased.
CAPEX has decreased.
No dividends
Net borrowing has decreased
Working capital has increased

Income has decreased.


CFO has decreased.
CAPEX has decreased.
No dividends
Net borrowing has decreased
Working capital has increased

4
II

III

Overall assessment: Income, expenditure, profit have decreased. Company is going facing declining business operations.

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