1 ) Beginnings of Cash – Accounts receivable ( payment from clients ) . Returns from Sale of assets ( PP & A ; E ) . returns from sale of discontinued operations. Issue of Stock and long term debt
Use of Cash – Buying of stock lists. Account payables ( payments to providers ) . Purchase of Assets ( PP & A ; E ) . Investing in capitalized package. chief payment of short term debt. Repurchase of Stock. Dividends paid
2 ) Cash flow from operations ( 125. 2. 89. 3. and 46. 8 ) was greater than that from net income ( – 377. 9. -623. 5. and -320. 6 ) . The ground for difference is batch of non- hard currency outgo such as depreciation. amortisation. and restructuring was deducted from the grosss to come to Net Income. Besides. the addition from investing was deducted from the Net income as it is besides a non-cash point.
3 ) No. the hard currency generated from operations ( 125. 2. 89. 3. and 46. 8 ) was less than the investing in capital outgo ( 129. 7. 174. 4. and 303. 8 )
4 ) No. the hard currency generated from operations ( 125. 2. 89. 3. and 46. 8 ) was less than the sum of investing in capital outgo ( 129. 7. 174. 4. and 303. 8 ) and dividends paid ( 0. 7. 2. and 26. 0 ) .
5 ) Not applicable
6 ) Alpha corp used the undermentioned beginnings to fund capital outgo and dividends – Returns from Sale of assets ( PP & A ; E ) . returns from sale of discontinued operations. Issue of Stock and long term debt.
7 ) Yes. Currents assets such as history receivables. stock list. and other current assets and current liabilities such as Histories collectible were utilizations and beginning of hard currency from the working capital severally.
8 ) The other major points that impacted hard currency are – payments of long term debt. and returns from Disposal from PP & A ; E
1 ) Net Income- in the last three old ages NI has decreased from -320. 6 to -377. 9. That is the company has been incurring increasing losingss.
2 ) Cash flow from operations – in the last three old ages CFO has tripled ( approx. ) from 46. 8 to 125. 2.
3 ) Capital outgo – Company has been puting the capitals but the sum has steadily decreased from 303. 6 to 129. 7.
4 ) Dividends – Alpha corp stopped paying dividends in 1991 though it paid in the old old ages.
5 ) Internet Borrowing – Net adoptions were positive in 1989 but since so Alpha has been paying off batch of long term debts ensuing in negative net borrowin in 1990 and 1991.
6 ) Working capital histories – In 1989. Alpha was purchasing more assets and paying off current liabilities such as history payables. However. in 1990 & amp ; 91. the tendency was reversed.
Alpha – seems to be traveling through troubled times in the last two old ages. It has been running into losingss for all the 3 old ages. Though it’s operations are bring forthing hard currency but its NI is taking a hit because of batch of depreciation/amortization and restructuring. Besides. the CFO is non adequate to cover the capital outgo because of which it has been selling assets. borrowing debts from market and publishing category B stocks.
Beta – has been making reasonably good financially. Its NI has been turning at a good gait from 400K to 6. 323K. It is in turning stage which is apparent from
the increasing investing in capital outgo and turning stock list. It besides invested extra hard currency in marketable securities and issued common stock every bit good. However. it needs to be argus-eyed of turning histories receivable from 613 to 10. 837 from 1990 to 91.
Gamma – From 1989 -91. Gamma has gone from a net income of 1Bn to a loss of 617Mn. Even though the operation is still bring forthing hard currency but the sum has been bit by bit diminishing. The lessening in Accounts collectible and stock list indicates that the operation has taken a hit seemingly because of lessening in demand. The lessening in Account receivables suggests that it has been selling less. Though it has been puting in capital the sum invested has been diminishing proposing low assurance of direction in future mentality. An tantamount sum of gross revenues and redemption of exchequer stocks is besides non good mark.