Byte City, Inc., provided the following cash flow information in the form of subtotals on its cash flow statements:

2000 1999 Net cash provided by operating activities $ 2,956,020 $ 587,249 Net cash used in investing activities (8,123,648) (33,942,808)

Net cash provided by financing activities 3,880,973 31,672,955 Net decrease in cash and cash equivalents $(1,286,655) $ (1,682,604)

Required

a. Did Byte City’s cash and cash equivalents increase or decrease in 1999? In 2000? Why?

b. How would you assess Byte City’s cash flows from operating activities?

c. What financing and investing strategies was Byte City apparently following in 1999? How did this strategy change in 2000?

d. If Byte City purchased other companies in 1999 for more than $47 million, and borrowed almost $37 million, what does this new information indicate about its financing and investing strategies.

e. If Byte City made zero payments on long-term debt in 1999,but its payments in 2000 totaled more than $26 million, reevaluate its financing strategies?

f. What other information would be helpful in answering these types of questions?