S. No.

Items
1 Operation
Major sources

Major Uses
2 Investment
Major Sources
Major Uses

4 Financing
Major Sources
Major Uses
5
Whethter CFO
Profit

6
Whether Excess
CFO invested
7
Whether CFO or
CFI used for
8 Trends
Profit
CFO
Capex
Dividend
Net Borrowing
Working Capital
9
Overall
Assessment
Framework 1 -Analyzing Cash Flows of
Beta companies.
1991
Cash received from customers $83,865
Cash paid to suppliers and employees 77,820
0
marketable securities purchase 8,000
proceeds from the issuance of common
stock 23,082
proceeds payment of subordinated 5,000
Profit is greater than CFO.
No
No
profit has increased by 21.57 % as
compared to previous year.
Increased by 40.2 % as compared to
previous year.
Increased by 31 %.
in this year company borrowed huge
amount of money in some project.
The beta corporation is going the right way
and making profit .
1990
cash received from customers $73,273 cash received from customers
cash paid to suppliers and
employees 65,480
cash paid to suppliers and
employees
0
Capital expenditure 4,600 capital expenditure
proceeds from the issuance of
common stock 141 proceeds payment of subordinated
Net payment under working
capital line of credit 2000
Net payment under working capital
line of credit
CFO is greater than profit. CFO is greater than profit.
yes yes
yes yes
Profit has increased by
1147.24 % as compared to
previous year.
After 1989 company is going to
right direction .
increased by 90%. Possetively.
Increased by 26%.
in this year company has huge
amount of money invest in capital
assets.
in this year company debt
decreased by 77%.
in this year also company has
borrowed huge amount of money
that means company is going to be
invest in some project.
same same.
1989
$51,110
46,589
0
3,650
4,400
860
S. No.
1
Depreciation and
amortization = 828,560

Tax = 105,614
2
0

Purchase of plant,
property, and equipment
=737,548

4
Treasury share including
tax benefits =239,653

Purchase of treasury
shares=240,719
5 Yes

6 Yes, CFO Excess invested
7 Both
8
Profit
In this year company's
profit have decline by (-
93.0) % as compared to
previous year.
Major Uses
Framework 1 -Analyzing Cash Flows of Gama Companies.
Items 1991
Operation
Major sources
Major Uses
Investment
Major Sources
Financing
Major Sources
Major Uses
Whethter CFO Profit
Whether Excess CFO
invested
Whether CFO or CFI
used for financing
Trends
CFO
CFO has increased by
27.41% as campare to
previous year.

in this year company has
invest huge ammount of
money to purchase Fixed
assets.


decreased by 19 % that
means good sign for
acompany.

9
in this year company is
going to right way.
Overall
Assessment
Capex
Dividend
Net Borrowing
Working Capital
Depreciation and
amortization = 796,201
Depreciation and
amortization =
686,738
Account receivable =
241,357
Account Receivable
= 373,248
0 0
Purchase of plant and
equipment= 1,027, 625
Purchase of plant
and equipment ,
property
=1,223,038
Treasury share
including tax
benefits=296,225
Treasury share
including tax
benefits =230,733
0
Purchase of treasury
shares=270,231
Purchase of traesury
shares=814,958
Yes Yes
Yes, CFO Excess
invested
Yes, CFO Excess
Invested
Both Both
in this year company
profit has decreased as
campare to previous
year from 93.06 %.
In this year
company is in good
position but after
this year company is
going decline.
Framework 1 -Analyzing Cash Flows of Gama Companies.
1990 1989
in this year CFO has
increased by 3.06 % as
campare to previous
year.
In this year CFO is
1,479,391.
Same situation.
in this year also the
company has invest
huge money to
purchasing fixed
assets .
Decreased by 56% that
means company paying
debts quikly.
in this year
company has
borrow low ammont
of money.
same situation. same situation.
Framework 1 -Analyzing Cash Flows of Gama Companies.
1989
S. No.
1
Depreciation 168.4

Accounts payable 91.3
2
Depreciable and other assets 157.0

Investment in depreciable assets 129.7

4
proceeds from long term debts 44.4
payments of long term debts 126.5
5 CFO is greater than profit.

6 YES
7 BOTH
8
Profit Continuing loss.
CFO
CFO increased by 40.2 % as
campare to previous year.

in this year capex decreased by 37
%.
in this year dividend was 0.

Net borrowings decreased by99 %
as campare to previous year.

Financing
Major Sources
Major Uses
Whethter CFO Profit
Whether Excess CFO
invested
Whether CFO or CFI
used for financing
Trends
Capex
Dividend
Net Borrowing
Working Capital
Major Uses
Framework 1 -Analyzing Cash Flows of Alfa companies.
Items 1991
Operation
Major sources
Major Uses
Investment
Major Sources
9
the company was going to loss from
continue operations so that menas
compamy was going to be
bankruptcy.
2
1
3
4
1
Alpha Corporation
Beta Corporation
Gamma Corporation
Framework 2 for Class exercise:
Likely to declare Reasonable Cash Flow
bankruptcy soon some problems noted
Overall
Assessment
Restructing and other unusual items. 384.1

Gain from sale of investment and other

assets 119
Proceeds fronm the sale of discontinued
operations. 407.3
investment in depreciable assets 174.4
proceeds from long term debts 167.7
payments of long term debts 544.8
CFO is greater than profit
YES
BOTH
Continuing loss.
CFO increased by 90.8 % as campare to
previous year.
in this year also capex has decreased
in this year dividend has decrease by 72.30
%as campare to previous year.
Net borrowing decreased by 259 % as
campare to previous year.
Framework 1 -Analyzing Cash Flows of Alfa companies.
1991 1990
the company was going to loss from
continue operations so that means company
was going to be bankruptcy.
3 5 4
Reasonable Cash Flow Outstanding Cash Flow
some problems noted Few Problems
Depreciation 263.4
Accounts Receivable 45.2
Depreciable and other assets 94.1
investmnt in depreciable assets. 303.06
proceeds from long term debts 305.0
payment of long term debts 91.7
CFO is greater bthan profit
YES
BOTH
Continuing loss.
In this year CFO was $ 46.8
millions.
in this year also capex has
decreased.
in this year company has
dividend paid $26.0 millions.
In this year Net borrowings was
$139.8 millions.
Framework 1 -Analyzing Cash Flows of Alfa companies.
1989
Same situation