12. Below are summary cash flow statements for three roughly equal-size companies

a. Calculate each company's cash balance at the end of the year.

b. Explain what might cause company C's net cash from financing activities to be negative.

c. Looking at companies A and B, which company would you prefer to own? Why?

d. Is company C's cash flow statement cause for any concern on the part of C's management or shareholders? Why or why not?

Transcribed Image Text:

Net cash flows from operations Net cash used in investing activities Net cash from financing activities Cash balance at beginning of year ($ millions) A B C $ (300) S(300) $ 300 (900) (30) (90) 1,200 210 (240) 150 150 150