Identify two significant cash flow issues within Operating Activities. Which of these two issues is the primary problem creating larger cash out flow?

1. What action was taken to acquire badly needed cash? What analytical tool(s) best measure finding? Summarize finding by associating with analytical tool(s)

2. What was reason for negative cash flow in Investing activities? What analytical tool(s) best measures finding? Summarize finding by associating with analytical tool(s)

Case 4-4 Submission Requirements

You are provided complete financial reports, Balance Sheet, Income Statement and Cash Flow Statement. No additional statements or reports are required of student.

1. This case presents a minimum of seven findings.

You must identify three of the seven findings.

Findings can be found within Cash Flow Statement

Next each finding must be measured/supported by relevant ratios.

Finally: Provide a summary analysis of each finding

2. Aforementioned (a) findings, (b) measurement/ratio, and (c) summary analysis must be delineated within related paragraph order. Example:

State finding #

Identify while connecting dots to cash flow statement and relevant

2. Then move onto the next finding.

3. Then move onto the next finding.

Company:	Hydrogenics
Stock Symbol	HYGS
Stock Exchange:	NASDAQ
Statement Tear-end Dates:	12/31/13	12/31/12
Financial Reports rounded to:	Thousands
Supplemental Ratio Requirements:	2013	2012
Rent expense(in thousands)	$845	$906
Dividends per share:
End of year stock price(adjusted for splits)	$19.15	$6.77
Check Figures
Balance Sheet
Current Assets	$31,649	$34,607
Total Assets	$40,070	$41,877
Current Liabilities	$22,528	$26,054
Total Stockholders' Equity	$6,161	$4,307
Income Statement
Gross Profit	$12,061	$5,249
Operating Profit	$6,783	$12,225
Net Profit	$8,908	$12,797
Cash Flow
Net Flows from Operations	$9,197	$1,163
Net Flows from Investing Activity	$971	$400
Net Flows from Financing Activity	$8,669	A
Annual Consolidated Statement of Cash Flow
	31-Dec-13	31-Dec-12
Cash Flow from Operating Activities
Income(loss) from Continuing operations	$(8,908)	$(12,797)
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	$712	$870
stock-based compensation	$631	$577
Restructuring and impalement charges
Increase(decrease)in provision for deferred income taxes
(Gain) loss on sales of investments, acquisitions, and securities	$2,065	$438
(Gain) loss on sales of property, plant and equipment	$3	$7
Other non-cash items, net	$5,179	$(1,889)
Changes in assets and liabilities:
(Increase) decrease in receivables	$384	$(1,632)
(Increase) decrease in inventories	$(973)	$(2,678)
Increase(decrease) in other current assets	$(47)	$(181)
Increase(decrease) in accounts payable, accrued liabilities and income taxes payable	$(1,614)	$984
Increase(decrease) in deferred liabilities	$(6,629)	$15,138
Other assets and liabilities, net
Net cash provided by (used in) operating activities	$(9,197)	$(1,163)
Cash flows from Investing Activities:
Purchase of property, plant and equipment	$(939)	$(424)
Sales of property, plant and equipment		$26
Purchases of marketable securities and short-term investments
Sales of marketable securities and short-term investments
Acquisitions, net of cash acquired
Other investing activities, net	$(32)	$(2)
Net Cash provided by (used in) operating activities	$(971)	$(400)
Cash flows from Financing Activities
Short-term borrowings, net
Proceeds from long-term borrowings	$1,782	$1,621
Payment of long-term borrowings	$(393)	$(308)
Proceeds from sales of common stock	$7,280	$5,178
Repurchase of common stock/treasury stock
Dividends to shareholders
Other financing activities, net
Net cash provided by (used in) financing activities	$8,669	$6,491
Net cash provided by (used for) discontinued operations
Effect of exchange rate change on cash, net	$302	$307
Net increase(decrease) in cash and equivalents for period	$(1,197)	$5,235
Cash and equivalents, beginning of period	$13,020	$7,785
Cash and equivalents, end of period	$11,823	$13,020
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest	8	3
Income taxes(refunded)
	31-Dec-13	31-Dec-12
Cash Flow from Operating Activities
Income(loss) from Continuing operations	$(8,908)	$(12,797)
Depreciation and amortization	$712	$870
stock-based compensation	$631	$577
Restructuring and impalement charges
Increase(decrease)in provision for deferred income taxes
(Gain) loss on sales of investments, acquisitions, and securities	$2,065	$438
(Gain) loss on sales of property, plant and equipment	$3	$7
Other non-cash items, net	$5,179	$(1,889)
(Increase) decrease in receivables	$384	$(1,632)
(Increase) decrease in inventories	$(973)	$(2,678)
Increase(decrease) in other current assets	$(47)	$(181)
Increase(decrease) in accounts payable, accrued liabilities and income taxes payable	$(1,614)	$984
Increase(decrease) in deferred liabilities	$(6,629)	$15,138
Other assets and liabilities, net
Purchase of property, plant and equipment	$(939)	$(424)
Sales of property, plant and equipment		$26
Purchases of marketable securities and short-term investments
Sales of marketable securities and short-term investments
Acquisitions, net of cash acquired
Other investing activities, net	$(32)	$(2)
Short-term borrowings, net
Proceeds from long-term borrowings	$1,782	$1,621
Payment of long-term borrowings	$(393)	$(308)
Proceeds from sales of common stock	$7,280	$5,178
Repurchase of common stock/treasury stock
Dividends to shareholders
Other financing activities, net
Net cash provided by (used for) discontinued operations
Effect of exchange rate change on cash, net	$302	$307
Net increase(decrease) in cash and equivalents for period	$(1,197)	$5,235
Cash and equivalents, beginning of period	$13,020	$7,785
Cash paid during the year for:
Interest	8	3
Income taxes(refunded)
	31-Dec-13		31-Dec-12
Inflows	$	%	$	%
Proceeds from operating activities
Sales of property, plant and equipment			$26	0.4%
Sales of marketable securities and short-term investments
Divestiture of acquisitions, net of cash acquired
Proceeds from other investing activities, net
Proceeds from short-term borrowings, net
Proceeds from long borrowings, net	$1,782	19.0%	$1,621	22.7%
Proceeds from sales of common stock	$7,280	77.8%	$5,178	72.6%
Proceeds from other financing activities, net
Proceeds from discontinued operations
Gains from the effect of exchange rate changes on cash, net	$302	3.2%
Total Inflows	$9,364	100.0%	$7,132	100.0%
Outflows
Losses from operating activities	$9,197	87.1%	$1,163	61.3%
Purchase of property, plant and equipment	$939	8.9%	$424	22.4%
Purchases of marketable securities and short-tem investments
Acquisitions, net of cash acquired
Losses from other investing activities, net	$32	0.3%	$2	0.1%
Payment of short-term borrowings, net
Payment of long-term borrowings	$393	3.7%	$308	16.2%
Repurchase of common stock/treasury stock
Payment of dividends to shareholders
Payment of other financing activities, net
Losses from discontinued operations
Losses from effect of exchange rate changes on cash, net
Total Outflows	$10,561	100.0	$1,897	100.0
Net increase(decrease) in cash and cash equivalents	$(1,197)		$5,235