Given the following information extracted from Byte City’s financial statements, calculate and evaluate its cash flow ratios:

2000 1999 Interest paid $ 4,186,532 $ 3,695,431 Interest received 718,574 1,218,940 Income taxes paid 150,000 1,997,600 Total assets 107,219,075 103,542,717 Long-term debt 58,742,916 62,671,335 Shareholders’ equity 42,827,531 35,912,651 Net income (loss) 7,459,828 (32,818,050)

Net revenues 129,485,952 109,948,716 Net cash provided by operations 2,956,020 587,249 Cash received from customers 118,158,941 101,879,383 Required

a. Discuss the differences between net cash provided by operations and cash received from customers.

b. Discuss the differences between net revenues and cash received from customers.

c. Using the previous data, estimate Byte City’s overall cash flows or cash balances at the end of each year. Justify your conclusions.

d. Refer to the data in the previous problem (5-37). Revise your conclusions about Byte City’s overall cash flows or cash balances at the end of each year.
Again, justify your revised answer.

e. Calculate the following ratios for each year:
1. Cash return on assets (2000 only)
2. Quality of sales 3. Quality of income 4. Cash interest coverage

f. Based on these ratios,evaluate Byte City’s performance each year.In what areas do the cash flow ratios indicate positive or negative performances?
g. What additional information would be useful in evaluating Byte City’s performance?