Use the https://www.sec.gov/cgi-bin/viewer?action=view&cik=1513761&accession_num

Question

Use the https://www.sec.gov/cgi-bin/viewer?action=view&cik=1513761&accession_number=0001144204-18-011097&xbrl_type=v# view a Statement of Cash Flows for Norwegian Cruise Line and answer the following questions:

How much is their cash flows from operating activities?

How much is their cash flows from investing activities?

How much is their cash flows from financing activities?

How much is their net income?

Calculate their free cash flow.

In your own opinion, would you consider this company a good investment based on their Statement of Cash Flows? Explain.

Explanation / Answer

1. Cash Flow from operating activities is $ 1,585,741

2.Cash Flow from investing activities is $ (1,404,898) . Negative value means it has negative cash flow from investing activities. Primary reason is purchase of property and equipments.

3.Cash Flow from financing activities is $ (133,000).

4. Net income is $ 759,872

5.Free cash flow is total of cash generated from / (used in) operating, investing anf financing activities.

Free cash flow = 1,585,741 + (1,404,898) + (133,000) = 47,843

6. In all the three years reported in cash flow statement, the company has generated enough cash from operating activities to provide for huge purchase of property & equipment. In all the three years the company has free cash flow available though not of sizeable amount. Futher considering continuous increase in net income of the company, this company seems to be a good investment .

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