How would you assess the overall cash flow trend of each firm

Do you have any concerns about the financial strength of any of the three businesses

Are there specific items included in any of the cash flow statements that you find concerning or would require additional information to assess

Did the cash flow from operations cover both the capital expenditures and the firm's dividend payments, if any

Were the working capital accounts primarily sources of uses of cash

Are you concerned about the trend in working capital account case use for any of the three firms

Exhibit 2 Beta Corporation, Consolidated Statements of Cash Flows (S thousand) Year Ended December 31 1990 1991 1989 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers and employees Interest received Interest paid Income taxes paid $83,865 77,820) $73,273 $51,110 (65,480) (1,046) 7,000 (536) 233 (102) 3,919 Net cash generated by operating activities 3,670 Cash Flows from Investing Activities: Capital exponditures Marketable securities purchases (6,031) (8,000) (14,031) (4,600) (3,650) Net cash used in investing activities 4,600) (3,650) Cash Flow from Financing Activities: Net payments under working capital line of credit Not paymonts under equipment line of credit Principal payments under capital lease obligations (126) (213) (169) (5,000) 23,082 16,928 Proceeds (payment) of subordinated debt 4,400 639 3,515 Proceeds from the issuance of common stock Net cash provided by (used in) financing activitios 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 yoar 141 (2,198) 6,812 216 5,159 $5,375 3,535 1,624 $ 5,159 $12,187 Reconciliation of Net Income to Net Cash Generated by Operating Activities: Net income $ 6,323 $ 5,201 Adjustments to Reconcile Net Income to Net Cash Consumed by Operating Activities: 47 2,701 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 58 40 85 Changes in Assets and Liabilities: (10,837) (951) (665) (1,550) ,043 (613) (Increase) in accounts receivable (Increase) decrease in inventory (Increase) decrease in deposits and other assets Increase (decrease) in accounts payable and 366 5,657 2,404) accrued expenses 1,799 3,253 Total adjustments Net cash generated by operating activities $3,9197,000$3,670