Acct 1002 W3D12

1.) To be successful, a company must anticipate its cash flows. What evidence would help you evaluate whether or not a company does adequate cash planning? Is there any information not available in the company’s annual report that would help you make this evaluation?

2.)Upon studying its statement of cash flows, you note that over the last three years a firm has consistently reported negative cash flow from operating activities, positive cash flow from investing activities, and negative cash flow from financing activities. What does this combination of cash flows suggest to you about the firm? Is there any additional information that you would like to see? If so, what?