Problem
List the total amounts for operating, investing, and financing cash flows for each of the past three years. Then comment on each of the following:
1. Operating cash flows: Have the operating cash flows been positive? Have they increased or decreased over the past three years? Are the operating cash flows sufficient to meet cash requirements, or must your company obtain cash from financing in order to meet its cash requirements? You should explain why cash flows from operations are more or less than net income.
2. Investing cash flows: Have the investing cash flows been positive or negative over the past three years? What does this tell you about your company? Discuss the specific sources and uses of cash in this area.
3. Financing cash flows: Have the financing cash flows been positive or negative over the past three years? How has the company been financing activities? Has your company issued new stock, obtained new debt, or retired debt? Did your company pay dividends?