alfa, beta, gama

8/11/2019 Alfa, Beta, Gama

1/20

S. No. Items1 Operation

Major sources

Major Uses

2 InvestmentMajor Sources

Major Uses

4 Financing

Major Sources

Major Uses

5Whethter CFO

Profit

6W et er ExcessCFO invested

7W et er CFO orCFI used for

8 Trends

Profit

CFO

Capex

Dividend


2/20

Net Borrowing

Working Capital

9OverallAssessment


3/20

Framework 1 -Analyzing Cash Flows ofBeta companies.

1991

Cash received from customers $83,865

Cash paid to suppliers and employees 77,820

0

marketable securities purchase 8,000

proceeds from the issuance of commonstock 23,082

proceeds payment of subordinated 5,000

Profit is greater than CFO.

No

No

profit has increased by 21.57 % ascompared to previous year.

Increased by 40.2 % as compared toprevious year.

Increased by 31 %.


4/20

in this year company borrowed hugeamount of money in some project.

The beta corporation is going the right wayand making profit .


5/20

1990

cash received from customers $73,273 cash received from customers

cash paid to suppliers andemployees 65,480

cash paid to suppliers andemployees

0

Capital expenditure 4,600 capital expenditure

proceeds from the issuance ofcommon stock 141 proceeds payment of subordinated

Net payment under workingcapital line of credit 2000

Net payment under working capitalline of credit

CFO is greater than profit. CFO is greater than profit.

yes yes

yes yes

Profit has increased by1147.24 % as compared toprevious year.

After 1989 company is going toright direction .

increased by 90%. Possetively.

Increased by 26%.

in this year company has hugeamount of money invest in capitalassets.


6/20

in this year company debtdecreased by 77%.

in this year also company hasborrowed huge amount of moneythat means company is going to beinvest in some project.

same same.


7/20

1989

$51,110

46,589

0

3,650

4,400

860


8/20


9/20

S. No.1

Depreciation andamortization = 828,560

Tax = 105,614

2 0

Purchase of plant,

property, and equipment=737,548

4

Treasury share includingtax benefits = 239,653

Purchase of treasuryshares=240,719

5 Yes

6 Yes, CFO Excess invested

7 Both

8

Profit

In this year company'sprofit have decline by (-93.0) % as compared toprevious year.

Major Uses

Framework 1 -AnalyziItems 1991

Operation

Major sources

Major Uses

InvestmentMajor Sources

Financing

Major Sources

Major Uses

Whethter CFO Profit

Whether Excess CFOinvestedWhether CFO or CFIused for financing

Trends


10/20

CFO

CFO has increased by27.41% as campare toprevious year.

in this year company hasinvest huge ammount ofmoney to purchase Fixedassets.

decreased by 19 % thatmeans good sign foracompany.

9in t is year company isgoing to right way.

OverallAssessment

CapexDividend

Net Borrowing

Working Capital


11/20

Depreciation andamortization = 796,201

Depreciation anamortization =686,738

Account receivable =241,357

Account Receivable= 373,248

0 0

Purchase of plant andequipment= 1,027, 625

urc ase o p anand equipment ,

property= 1,223,038

Treasury shareincluding taxbenefits= 296,225

Treasury shareincluding taxbenefits = 230,733

0

Purchase of treasuryshares=270,231

Purchase of traesuryshares= 814,958

Yes Yes

Yes, CFO Excessinvested

Yes, CFO ExcessInvested

Both Both

in this year companyprofit has decreased ascampare to previousyear from 93.06 %.

n s yearcompany is in goodposition but afterthis year company isgoing decline.

ng Cash Flows of Gama Companies.1990 1989


12/20

in this year CFO hasincreased by 3.06 % ascampare to previousyear.

In this year CFO is1,479,391.

Same situation.

company has investhuge money topurchasing fixedassets .

Decreased by 56% thatmeans company payingdebts quikly.

in this yearcompany hasborrow low ammontof money.

same situation. same situation.


13/20


14/20


15/20

S. No.1

Depreciation 168.4

Accounts payable 91.3

2

Depreciable and other assets 157.0

Investment in depreciable assets 129.7

4

proceeds from long term debts 44.4

payments of long term debts 126.5

5 CFO is greater than profit.

6 YES

7 BOTH8

Profit Continuing loss.

CFOCFO increased by 40.2 % ascampare to previous year.

in this year capex decreased by 37%.

in this year dividend was 0.

Net borrowings decreased by99 %as campare to previous year.

Financing

Major Sources

Major Uses

Whethter CFO Profit

Whether Excess CFOinvestedWhether CFO or CFIused for financingTrends

Capex

Dividend

Net Borrowing

Working Capital

Major Uses

Items 1991Operation

Major sources

Major Uses

Investment

Major Sources


16/20

9

the company was going to loss fromcontinue operations so that menascompamy was going to bebankruptcy.

2

1

3

4

1

Alpha Corporation

Beta Corporation

Gamma Corporation

Framework 2 for Class exercise:Likely to declare Reasonable Cash Flowbankruptcy soon some problems noted

OverallAssessment


17/20

Restructing and other unusual items. 384.1

Gain from sale of investment and otherassets 119

Proceeds fronm the sale of discontinuedoperations. 407.3

investment in depreciable assets 174.4


payments of long term debts 544.8

CFO is greater than profit

YES

BOTH

Continuing loss.CFO increased by 90.8 % as campare toprevious year.

in this year also capex has decreasedin this year dividend has decrease by 72.30%as campare to previous year.Net borrowing decreased by 259 % ascampare to previous year.

Framework 1 -Analyzing Cash Flows of Alfa companies.1990


18/20

the company was going to loss fromcontinue operations so that means companywas going to be bankruptcy.

3 54

Outstanding Cash FlowFew Problems


19/20

Depreciation 263.4

Accounts Receivable 45.2

Depreciable and other assets 94.1

investmnt in depreciable assets. 303.06


payment of long term debts 91.7

CFO is greater bthan profit

YES

BOTH

Continuing loss.In this year CFO was $ 46.8millions.in this year also capex hasdecreased. in this year company hasdividend paid $26.0 millions.In this year Net borrowings was$139.8 millions.

1989


20/20

Same situation

alfa, beta, gama

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