The following are the comparative statements of cash flows for Italian Fine Leather Goods Incorporated (IFLG). Required
Question:
The following are the comparative statements of cash flows for Italian Fine Leather Goods Incorporated (IFLG).
Required
a. Discuss the company’s ability to meet its non-operating needs for cash over these three years, and comment on the continuing nature of the major items that have appeared over this period.
b. Comment on the changes in IFLG’s accounts receivable, accounts payable, and inventory levels over these three years.
c. How did the company finance its repayment of long-term debt and its acquisition of property, plant, and equipment in 2020?
d. Describe how the company’s mix of long-term financing has changed during this three-year period, in terms of the proportion of debt versus equity.
Step by Step Answer:
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley