AutoSave OFF o svo w Week#10_Participation Handout - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments X Calibri (Bo... 12 . Ai Aa V V AaBbcc AaBbCcDdE AaBbCcDdE Heading 1 1 Normal No Spacing Paste B I Uab X, X APA Styles Pane Dictate Sensitivity V Listed below are statements of cash flows for three companies in millions of dollars. Each company went public in 2020 and then began operations by acquiring a number of restaurants. Despite the identical incomes and cash flow of each company, there are some differences in the way that each company manages its cash flows. A Limited 2021 2020 B Limited 2021 2020 C C Limited 2021 2020 Operating activities Net income Depreciation Loss (gain) on disposal of non- current assets $800 300 $800 200 $800 220 $800 200 $800 210 $800 200 (10) 1.090 (50) (50) 40 1,000 (80) ( (50) 60 (20) 1,000 (20) (10) 10 1,000 (80) (50) 60 70 1,080 (150) (200) 90 1,000 (80) (50) 60 1,030 930 980 930 820 930 Increase in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by operating activities Investing activities Proceeds from disposal of property, plant, and equipment Purchases of property, plant, and equipment Net cash used by investing so 50 50 50 120 (2,350) (2,000) (830) (2,000) (430) (2,000) activities (2,300) (2,000) (780) (2,000) (310) (2,000) (425) (50) 1,500 () (100) 700 (50) 500 (20) 1,050 (115) 200 (5) 1,200 (70) (120) ( (5) Financing activities Bank loans received Bank loan payments made Common share sale proceeds Dividends paid Net cash provided (used) by financing activities Cash flow for the year Cash, January 1 Cash, December 31 1,130 60 1,130 60 1,130 60 1,350 80 60 $140 (120) 80 60 $140 (430) 80 60 $140 $ 60 $60 $60 Page 1 of 2 360 words EX English (Canada) Focus E E 95% AutoSave OFF UD w Week#10_Participation Handout - Saved to my Mac Q Home Insert Draw Design Layout References Mailings Review View Tell me Share Q Comments X Calibri (Bo... 12 ' Aa 21 AaBbCc AaBbCcDE AaBbCDE Paste B I U v ab x x APA Heading 1 Normal No Spacing Dictate Styles Pane Sensitivity (a) Which company may have too much debt? (b) Why do you think that C Limited had to pay down its bank loans so much in 2021? (c) If you were a shareholder wanting to receive dividends but were not too interested in owning shares for a long time, which company's shares might you consider buying? (d) Which company is the most committed to growth? Do you think that this company is growing too quickly? Page 2 of 2 360 words NEX English (Canada) Focus 114%