Base company - Analyze the company’s investing and financing activities for the

Question

Base company - Analyze the company’s investing and financing activities for the most recent year as identified in the statement of cash flows, specifically identifying the two largest investing activities and the two largest financing activities. Discuss whether you agree or disagree with the investing and financing strategies that your company appears to be employing and whether the company’s cash flow is well-managed.

Thank you very much!

(15,499) 16,624 (838) (15,831) 14,079 2,491) (17,800) 12,986 (389) (14,T82) 12,791 (353) (14,824) 7.791 (1405) Purchases of investments th Proceeds from disposals of investments Acquisitions of businesses, equity method investments and nonmarketable securities 565 148 872 20 Proceeds from disposals of businesses equity method investmerts anc onmarketable securities 1,035 Purchases of property, plant and equipment (2,262) (2,558) (2,406) (2,550) (2,780) Proceeds from disposals of property, plarnt 150 223 143 and equipment (303) (4,214) 43,425 (209) (40) 186 40,434 (37,738) 1,245 (3,564) Other investing actvities (999) 27,281 (25,615) 1434 (7,506) 41,674 (36,962) 1,532 (11,404) 42.791 (38,573) 1.489 4,559) Net cash used in investing activities issuances of debt l Payments of debt Issuances of stock Purchases or stock for treasury Dividends Other inancing acdviies (4,832) (6,043) 79 (6,545) (5,350) (4,969) 100 (3,347) 255) il Net cash used in financing activities (5,113) (3,631) (3,745) 934) Etfect of exchange rate changes on cash and cash equivalents (8TB) 1,246 (1,649) (1,456) 1972 (4,361) Cash and cash equivalents, net increase idecreasej during the year l 7,309 8,958 10414 8,442 2,803 Cash and cash equivalents, balance at beginning of year 8.555 7,309 8.958 10,414 8.442 Cash and cash equivalents, balance at end of year

Explanation / Answer

2 Largest investing activity:

1. Purchase of investment

2. Purchase of property, plant and equipment

2 Largest financing activity are:

1.Issuance of debt

2. Payment of debt

I am totally disagree with the company investing and financing strategy. There are certain things which are totally wrong classified in the cash flow statement. These are:

1. Proceeds from disposal of business, equity method investment and other marketable securities are classified in the investing activity but the correct way is to be in the financing activity.

2. Purchase of stock for treasury are classified in the financing activity but the correct way is to be in the investing activity.

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