Exhibit contains cash-flow statements from Beta Corporation. The CF statement has three years of data. Examine the contents of these cash-flow statements carefully. Answer the following questions about EACH OF THREE YEARS of CF statements.

1. For each of the years on the Statement of CFs: a. What were the firms major sources of cash? Its major uses of cash? b. Was CF from operations greater than or less than net income? Explain in detail the major reasons for the difference between these two figures? c. Was the firm able to generate enough cash from operations to pay for all its capital expenditures? d. Did the CF from operations cover both the capital expenditures and the firms dividend payments, if any? e. If it did, how did the firm invest its excess cash? f. If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? g. Were the working capital (current asset or current liability) accounts other than cash and cash equivalents primarily sources of cash, or uses of cash? h. What other major items affected cash flows?

2. What was the trend in: a. Net income? b. Cash flow from (continuing operations? c. Capital expenditures? d. Dividends? e. Net borrowing (proceeds less payments of short- and long-term debt)? f. Working capital accounts?

3. Based on the evidence in the Statement of CFs alone, what is your assessment of the financial strength of this business? Why?

Year Ended December 31 2016 2015 2014 Cash Flows from Operating Activities: $83,865 $73,273 $51,110 Cash received from customers Cash paid to suppliers and employees Interest received Interest paid Income taxes paid (77,820) (65,480) (46,589) 132 643 355 (536) 1,046) (908) 75 2,233 102 Net cash generated by operating activities 3,919 7,000 3,670 Cash Flows from Investing Activities: Capital expenditures Marketable securities purchases (6,031) (4,600 (3,650) 8,000 Net cash used in investing activities (14,031 (4,600) (3,650) Cash Flow from Financing Activities: Net payments under working capital line of credit Net payments under equipment line of credit Principal pavments under capital lease obligations(169) (213) (276) Proceeds (payment) of subordinated debt Proceeds from the issuance of common stock (2,000) (860) (985) (126) (388) 4,400 639 16,928 (2,198)3,515 23,082 Net cash provided by (used in) financing activities Effect of exchange rate changes on cash Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 141 14 3755.159 4 6,812 216 3,535 1,624 $12,187$5,375 $5,159 Reconciliation of Net Income to Net Cash Generated by Operating Activities: Net income $6,323$5,201 $417 Adjustments to Reconcile Net Income to Net Cash Consumed by Operating Activities: Bad debt provision Depreciation and amortization Amortization of original issue discount Loss on disposition of assets Compensation expense related to stock grants 4,028 208 17 40 47 2,701 324 9 85 98 2,231 68 58 Changes in Assets and Liabilities: (Increase) in accounts receivable (Increase) decrease in inventory (Increase) decrease in deposits and other assets(665) Increase (decrease) in accounts payable and (10,837) (613) (1,550) (951)(810) 1,043 (762) 2,067 3,253 $3,919$7,000 $3,670 accrued expenses 5,657 2,404 Total adjustments Net cash generated by operating activities 1,799