company general Millis from the 10-k report!

Chapter 3: SCF - Question 4 Identify the primary cash outflows and inflows from investing activities. Description of Activity Amount Cash outflow: Purchases of land (460.9) Cash inflow: Consider three key issues at this point. Is the company adding assets? This is a sign of growth. Is the company replacing assets? This is a sign of growth and stability. Is the company only selling assets? This is a sign of retrenchment. Chapter 3: SCF - Question 5 Identify the primary cash inflow and outflow from financing activities. Description of Activity Cash inflow: Amount Cash outflow: (Note: cash dividends paid are reported here.) Pividends paid 1,195,8 Consider two key issues at this point. How is the company being financed, through debt or equity? Can you determine which is growing faster and why? A sound corporate strategy is to finance a company with debt during stable times, because this demands regular payment of principal and interest, and to finance a company with equity during unstable times, because leadership can elect to pay or not pay dividends