need help with all of question 1, cash flow adequacy ratio for firm A and B, and indicating phase of life cycle for each firm. thanks in advance and will give thumbs up.

Identify the major investing and financing transactions for each firm for the three years presented. Additionally, for each firm, indicate what the primary source of cash flows has been in the years presented (looking at all sections of the statement). Use your judgment to determine what is major and primary. a. The major investing activities for Firm A are the b. The major financing activities for Firm A are the c. For Firm A, the primary source of cash flows has been in the years d. The major investing activities for Firm B are the e. The major financing activities for Firm B are the f. For Firm B, the primary source of cash flows has been in the years Analysis: For each firm, compute and interpret the interest coverage ratio (as defined in the class) and cash flow adequacy ratio for the most recent year. (Interest Expense for Firm A is $84,566 and for Firm B is $1,417.) a. The interest coverage ratio for Firm A is -6.7 from dividing $568,696 by $84,566 b. The cash flow adequacy ratio for the most recent year of 1999 for Firm A is c. The interest coverage ratio for Firm B is 19.7 from dividing $28,015 by $1,417 d. The cash flow adequacy ratio for the most recent year of 2018 for Firm B is For each firm, compute and interpret the quality of earnings ratio for the most recent year. Discuss any weaknesses of the ratio as a measure of the actual quality of earnings. a. For Firm A, the quality of earnings ratio for 1999 is -0.126 this is from dividing $90,875 by $719,968. b. Some of the weaknesses of Firm A may be that the firm has a net loss, this means the earnings ratio will also be negative c. For Firm B, the quality of earnings ratio for 2018 is 1.7. This is from dividing $17,203 by $10,073. d. Some of the weaknesses of Firm B may be For each of the firms, indicate which phase of the company's life cycle you believe it is in (introduction, growth, maturity, or decline). Bliefly discuss the reasons for your conclusion. a. For Firm A, we believe the company is in b. For Firm B, we believe the company is in FIRMA CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Your Ended Deceber 3, 19 Operating Activities Net loss 5 (719.968) $(124,546) 5 (31,020) Adjustments to reconcile net loss to net cash provided (used) in operating activities Depreciation and amortization of fixed assets 36,806 9,421 1.442 Amortization of deferred stock-based compensation 30,618 2,386 1.354 Equity in losses of equity-method investees 76,769 2,905 Amortization of goodwill and other intangibles 214.694 42.599 Non-cash merger, acquisition, and investment related costs 8,072 1.561 Non-cash revenue for advertising and promotional services (5.837) Loss on sale of marketable securities 8688 271 Non-cash interest expense 29,171 23,970 64 Net cash used in operating activities before changes in operating assets and liabilities... (320,987) (41.433) (26,160) Changes in operating assets and liabilities, net of effects from acquisitions: Inventories (172,069) (20,513) (8.400) Prepaid expenses and other current assets (60,628) (16.758) (3.055) Accounts payable. 130,166 78.674 30,172 Accrued expenses and other current liabilities 65,121 21.615 5,274 Accrued advertising 42,382 9.617 2,856 Deferred revence 262 Interest payable 24,878 (167) Nel cash provided by changes in operating assets and liabilities, net of effects from acquisitions 230,112 72,468 26,847 Net cash provided (used) in operating activities (90,875) 31,035 687 Investing Activities Sales and maturities of marketable securities 4,024,551 332.084 4,311 Purchases of marketable securities (4.290,173) (546.509) (122.385) Purchases of fixed assets. (287.055) Acquisitions and investments in businesses, net of cash acquired (28,333) (7.603) (369.607 (19.019) Net cash used in investing activities (922,284) (261.777) (125,677) Financing Activities Proceeds from issuance of capital stock and exercise of stock options 64.469 14,366 53,35 Proceeds from long-term debi 1.263.639 325.987 75,000 Repayment of long-term debt (188,886) (78.108) (47) Financing costs (35,151 7.783 (2.309) Net cash provided by financing activities 1,104,071 254,462 126,002 Effect of exchange rate changes 489 35 Net increase in cash 91.401 23,685 1,012 Cash at beginning of period 25.561 1.876 864 Cash at end of period 116,962 25.561 1.876 Supplemental Cash Flow Information Fixed assets acquired under capital cases $ 25,850 $ $ Fixed assets acquired under financing agreements 3.463 5,608 1.500 Stock issued in connection with business acquisitions.. 774.409 Equity securities of other companies received for non-cash revenue 217.241 for advertising and promotional services... 54,402 Cash paid for interest, net of amounts capitalized 59.685 26,629 326 See accompanying notes to consolidated financial statements. FIRM B CONSOLIDATED STATEMENTS OF CASH FLOWS fin millions) Year Ended December I. 2012 16,175 $ 19.934 S $ 21,856 2.371 3,03) 10,073 3,116 2.975 160 (20) (346) 11.478 4.215 202 (292) (29) 15,341 5,418 274 219 441 (1.426) (3,436) 5,030 1.724 1.955 17.203 03.581) 4.780) 7.100 283 738 18.365 (1314) (4,615) 3.263 472 1.151 30,723 CASH, CASI EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash from operating activities Depreciation of property and equipment and other amortization, including capitalized content costs Stock-based compensation Other operating expense, nel Other expense (income), net Deferred income taxes Changes in operating assets and liabilities Inventories Accounts receivable, net and other Accounts payable Accrued cupenses and other Linearned revenue Net cash provided by used in operating activities INVESTING ACTIVITIES Purchases of property and equipment Proceeds from property and equipment incentives Acquisitions, nct of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by used in) investing activities FINANCING ACTIVITIES Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by used in financing activities Foreign currency effect on cash, cash equivalents, and restricted cash Net increase (decrease in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term det Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suites (7.804) 1.067 (116) 4.577 17.2401 (9.516) (11,955) 1.897 (13.972) 9,677 (12.731) (27,084) (13.427) 2,104 (2,186) 8.240 (7.100) (12.369) 618 (27) 0.860) (147) 0.716) (12) 3,759 19.9345 16.228 (1301) 14.799) (200) 9.928 713 1932 21.356 768 (668) (7.449) (337) 17.686) (351) 10,317 32.173 5 135 S 319 290 S 206 412 5,704 1.200 957 854 575 1,184 10,615 3.611 9,637 3.541 Identify the major investing and financing transactions for each firm for the three years presented. Additionally, for each firm, indicate what the primary source of cash flows has been in the years presented (looking at all sections of the statement). Use your judgment to determine what is major and primary. a. The major investing activities for Firm A are the b. The major financing activities for Firm A are the c. For Firm A, the primary source of cash flows has been in the years d. The major investing activities for Firm B are the e. The major financing activities for Firm B are the f. For Firm B, the primary source of cash flows has been in the years Analysis: For each firm, compute and interpret the interest coverage ratio (as defined in the class) and cash flow adequacy ratio for the most recent year. (Interest Expense for Firm A is $84,566 and for Firm B is $1,417.) a. The interest coverage ratio for Firm A is -6.7 from dividing $568,696 by $84,566 b. The cash flow adequacy ratio for the most recent year of 1999 for Firm A is c. The interest coverage ratio for Firm B is 19.7 from dividing $28,015 by $1,417 d. The cash flow adequacy ratio for the most recent year of 2018 for Firm B is For each firm, compute and interpret the quality of earnings ratio for the most recent year. Discuss any weaknesses of the ratio as a measure of the actual quality of earnings. a. For Firm A, the quality of earnings ratio for 1999 is -0.126 this is from dividing $90,875 by $719,968. b. Some of the weaknesses of Firm A may be that the firm has a net loss, this means the earnings ratio will also be negative c. For Firm B, the quality of earnings ratio for 2018 is 1.7. This is from dividing $17,203 by $10,073. d. Some of the weaknesses of Firm B may be For each of the firms, indicate which phase of the company's life cycle you believe it is in (introduction, growth, maturity, or decline). Bliefly discuss the reasons for your conclusion. a. For Firm A, we believe the company is in b. For Firm B, we believe the company is in FIRMA CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Your Ended Deceber 3, 19 Operating Activities Net loss 5 (719.968) $(124,546) 5 (31,020) Adjustments to reconcile net loss to net cash provided (used) in operating activities Depreciation and amortization of fixed assets 36,806 9,421 1.442 Amortization of deferred stock-based compensation 30,618 2,386 1.354 Equity in losses of equity-method investees 76,769 2,905 Amortization of goodwill and other intangibles 214.694 42.599 Non-cash merger, acquisition, and investment related costs 8,072 1.561 Non-cash revenue for advertising and promotional services (5.837) Loss on sale of marketable securities 8688 271 Non-cash interest expense 29,171 23,970 64 Net cash used in operating activities before changes in operating assets and liabilities... (320,987) (41.433) (26,160) Changes in operating assets and liabilities, net of effects from acquisitions: Inventories (172,069) (20,513) (8.400) Prepaid expenses and other current assets (60,628) (16.758) (3.055) Accounts payable. 130,166 78.674 30,172 Accrued expenses and other current liabilities 65,121 21.615 5,274 Accrued advertising 42,382 9.617 2,856 Deferred revence 262 Interest payable 24,878 (167) Nel cash provided by changes in operating assets and liabilities, net of effects from acquisitions 230,112 72,468 26,847 Net cash provided (used) in operating activities (90,875) 31,035 687 Investing Activities Sales and maturities of marketable securities 4,024,551 332.084 4,311 Purchases of marketable securities (4.290,173) (546.509) (122.385) Purchases of fixed assets. (287.055) Acquisitions and investments in businesses, net of cash acquired (28,333) (7.603) (369.607 (19.019) Net cash used in investing activities (922,284) (261.777) (125,677) Financing Activities Proceeds from issuance of capital stock and exercise of stock options 64.469 14,366 53,35 Proceeds from long-term debi 1.263.639 325.987 75,000 Repayment of long-term debt (188,886) (78.108) (47) Financing costs (35,151 7.783 (2.309) Net cash provided by financing activities 1,104,071 254,462 126,002 Effect of exchange rate changes 489 35 Net increase in cash 91.401 23,685 1,012 Cash at beginning of period 25.561 1.876 864 Cash at end of period 116,962 25.561 1.876 Supplemental Cash Flow Information Fixed assets acquired under capital cases $ 25,850 $ $ Fixed assets acquired under financing agreements 3.463 5,608 1.500 Stock issued in connection with business acquisitions.. 774.409 Equity securities of other companies received for non-cash revenue 217.241 for advertising and promotional services... 54,402 Cash paid for interest, net of amounts capitalized 59.685 26,629 326 See accompanying notes to consolidated financial statements. FIRM B CONSOLIDATED STATEMENTS OF CASH FLOWS fin millions) Year Ended December I. 2012 16,175 $ 19.934 S $ 21,856 2.371 3,03) 10,073 3,116 2.975 160 (20) (346) 11.478 4.215 202 (292) (29) 15,341 5,418 274 219 441 (1.426) (3,436) 5,030 1.724 1.955 17.203 03.581) 4.780) 7.100 283 738 18.365 (1314) (4,615) 3.263 472 1.151 30,723 CASH, CASI EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash from operating activities Depreciation of property and equipment and other amortization, including capitalized content costs Stock-based compensation Other operating expense, nel Other expense (income), net Deferred income taxes Changes in operating assets and liabilities Inventories Accounts receivable, net and other Accounts payable Accrued cupenses and other Linearned revenue Net cash provided by used in operating activities INVESTING ACTIVITIES Purchases of property and equipment Proceeds from property and equipment incentives Acquisitions, nct of cash acquired, and other Sales and maturities of marketable securities Purchases of marketable securities Net cash provided by used in) investing activities FINANCING ACTIVITIES Proceeds from long-term debt and other Repayments of long-term debt and other Principal repayments of capital lease obligations Principal repayments of finance lease obligations Net cash provided by used in financing activities Foreign currency effect on cash, cash equivalents, and restricted cash Net increase (decrease in cash, cash equivalents, and restricted cash CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on long-term det Cash paid for interest on capital and finance lease obligations Cash paid for income taxes, net of refunds Property and equipment acquired under capital leases Property and equipment acquired under build-to-suites (7.804) 1.067 (116) 4.577 17.2401 (9.516) (11,955) 1.897 (13.972) 9,677 (12.731) (27,084) (13.427) 2,104 (2,186) 8.240 (7.100) (12.369) 618 (27) 0.860) (147) 0.716) (12) 3,759 19.9345 16.228 (1301) 14.799) (200) 9.928 713 1932 21.356 768 (668) (7.449) (337) 17.686) (351) 10,317 32.173 5 135 S 319 290 S 206 412 5,704 1.200 957 854 575 1,184 10,615 3.611 9,637 3.541