The following are summary cash flow statements for three roughly equal-sized companies
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(S millions)
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|
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A
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B
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C
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Net cash flows from operating activities
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$(300;$(300;$
|
30C
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Net cash used in investing activities
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(900;
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(30;
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(90;
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Net cash from financing activities
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1.20Ct
|
21C
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(240;
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Cash balance at beginning of year
|
15
|
150
|
15C
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a. Calculate each company's cash balance at the end of the year.
b. Explain what might cause company C's net cash from financing activities to be negative.
c. Looking at companies A and B. which company would you preferto own? Why?
d. Is company C's cash flow statement cause for any concern on thepart of C's management or shareholders? Why or why not?