Analyzing Gateway Using the information in Gateway’s annual report shown in Appendix A, answer each of the following:

a. Is it possible to determine the amount of cash on hand and in the bank from the balance sheet data?

b. What types of assets does Gateway classify as cash equivalents? What is the longest acceptable date to maturity for investments classified as cash equivalents?

c. What was the total amount of financial assets reported for 1998? Did the amount reported increase or decrease from 1997? By what amount?

d. What was the total amount of cash and cash equivalents generated from operations in 1998? Did the amount increase or decrease over 1997?

e. Was the net increase in cash and cash equivalents during 1998 more than or less than the net cash and cash equivalents reported as provided by operations? What specific activities other than operations either generated additional cash or used cash during 1998?

f. Compare accounts receivable at the end of 1997 and 1998.

Was there an increase or decrease? What was the amount?

. Did the net amount reported as accounts receivable increase or decrease as a percent of sales and total assets in 1998 over 1997? Are these changes desirable or undesirable? Explain why.