Company reported negative cash flow on operating activity


These questions are basic financial statement analysis questions and not related to specific company. Thus answers should be in general.

1. Company reported significant increaase in long-term investments in balance sheet. Identify possible reasons for this increase and what analyst should take into account when analysing these changes.

2. Company reported significant increase in operating income. More detailed analysis revealed this increase was increased by considerable change of other operating income. Assess these changes and company's ability to expand its business in the future.

3. Company reported significant increase in working capital. Identify possible reasons for the increase and assess whether it is positive change for the company.

4. Asess how utility of profitibilaty ratios is affected by the fact that they are based on book values of capital and profits meausered on accrual basis.

5. Company reported negative cash flow on operating activity and positive on financial and investment activities. Identify possible reasons for mentioned balances of cash flows.

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Financial Management: Company reported negative cash flow on operating activity
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