The Assignment : Statement of Cash Flows: Three Examples

The Assignment : Statement of Cash Flows: Three Examples

Exhibits 1, 2, and 3 contain cash-flow statements from three companies. Each cash-flow

statement has three years of data. Examine the contents of these cash-flow statements carefully.

Answer the following questions about each of the three cash-flow statements.

I. For each of the years on the Statement of Cash Flows:

1. What were the firm’s major sources of cash? Its major uses of cash?

Alpha Corporation

Years | 1989 | 1990 | 1991 |

| Origins of Money

Short-term loans

Money from long-term debt

Uses of money

Payment of long-term debt

Investment in depreciable property | Origins of Money

Long-term debt

Sale of discontinued operations

Gains on sale of depreciable assets and other

Uses of money

Payment of long-term debt

Investment in depreciable property

Decrease in short-term loans | Origins of Money

Receivables

Gains on asset sales and other despicable

Uses of money

Investment in depreciable assets

Payment of long-term debt |

Beta Corporation

Years | 1989 | 1990 | 1991 |

| Sources of money

Silver received from clients

subordinated debt

Uses of money

Payments to suppliers and employees

Capital Expenditures

| Sources of money

Cash received from customers

Uses of money

Capital Expenditures

Payments to suppliers and employees

| Sources of money

Money received by customer

Security of common stock

Uses of money

Increase in receivables (receivable)

Payments to suppliers and employees |

Gamma Corporation.

Years | 1989 | 1990 | 1991 |

| Origins of Money

Increase in deferred revenue

Increased customer

Issuance of treasury shares including tax benefits

Use of Money

Purchase of treasury stock

Purchase of plant and equipment

| Origins of Money

Issuance of treasury shares including tax benefits

Increase in reserves restructured

Increased responsibilities

Use of Money...