Chapter 14, Problem 3WM

Summary Introduction

Requirement 1

To determine:

To determine if the cash flow from operations is positive or negative.

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 2

To determine:

To determine if the firm invested in or sold off long term investments.

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 3

To determine:

To determine the major finance sources of the company

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 4

To determine:

To determine the net change in cash

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 5

To determine:

To determine if the exchange rates have any effect on the cash flow of the company

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 6

To determine:

To determine the firm's liquidity

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 7

To determine:

To determine how well the company uses the assets

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 8

To determine:

To determine how well the company uses the leverage

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.

Summary Introduction

Requirement 9

To determine:

To determine whether the firm is profitable.

Introduction:

The net amount of cash as well as the equivalents of cash which are transferred into a business and out of the business is referred to as the cash flow. Generally when a firm generates a positive cash flow, then this shows the ability of the company to create value for the investors or shareholders.