Part 1:Salza Technology Corporation increased its sales from $375,000 in 2012 to $450,000 in year 2013 as is shown in the firms income statements presented below. LeAnn Sands, chief executive officer (CEO) and founder of the firm expressed concern that the cash account and the firms marketable securities declined substantially between 2012 and 2013. Salzas complete balance sheets are also shown below. Ms. Sands is seeking your assistance in the preparation of a statement of cash flows for Salza Technology.

Income statement (in $ Thousands)			2013	2012
	Net sales		450.00	375.00
		Less: cogs	270.00	225.00
	Gross profit		180.00	150.00
		Less: operating exp	46.00	46.00
		Less: Depr	30.00	25.00
	EBIT		104.00	79.00
		Less: Interest	4.00	4.00
	Income before tax		100.00	75.00
		Less: Income taxes	30.00	20.00
	Net income		70.00	55.00
	Cash dividend		20.00	17.00
	Addition to retained earnings		50.00	38.00
Balance sheet (in $ Thousands)
			2013	2012
	Cash		16.00	39.00
	Account receivable		80.00	50.00
	Inventories		204.00	151.00
	Current asset		300.00	240.00
	Gross fixed asset		290.00	200.00
		less accumuled depr	-125.00	-95.00
	Net fixed asset		165.00	105.00
		Total assets	465.00	345.00
	Account payable		45.00	30.00
	Bank loan		27.00	20.00
	Accrued liabilities		23.00	10.00
	Total current liabilities		95.00	60.00
	Long-term debt		15.00	15.00
		Total liabilities	110.00	75.00
	Common stock		120.00	85.00
	Retained earnings		235.00	185.00
		Total equity	355.00	270.00
		Total liabilities and equity	465.00	345.00

Question 1: How much is Operating cash flow?

a.	104.00
b.	200.00
c.	204.00

Question 2: How much is the Net operating Working Capital (NOWC) for year 2013?

a.	300
b.	32
c.	232

Question 3: How much is change in Net Operating Working Capital?

a.	132
b.	200
c.	32

Question 4 Salza: How much is Cash flow from Asset?

a.	118
b.	-18
c.	18

Question 5 Salza: How much is cash flow to creditors?

a.	-30
b.	3
c.	-3

Question 6 Salza: How much is Cash Flow to Shareholders?

a.	-10
b.	-15
c.	10

Part II: Find a public company listed on NYSE or NASDAQ.

The stock should have a closing price above $10 and a negative return (< -5%) from 12 months.

You can get performance data from websites like finance.google.com, finance.yahoo.com, or morningstar.com.

Research the company and answer the following questions.

1. What is the holding period return from past year?

the holding period return is calculated as (ending price - beginning price + dividend gain) / (beginning price)

2. Review at least two major investment (capital budgeting) decisions by the company.

Explain how those decisions had affected the past performances.

Or explain how those decisions could improve the future performance.

Only a short answer is needed.

Part III: There are many reasons why there was a financial crisis. The most significant event closely associated with this crisis is:

a. the use of financial hedging

b. government overspending

c. the real estate bubble