PT Sejahtera Sentosa and PT Jaya Utama had identical cash positions at the beginning and end of 2010. Each company also reported a net profit of Rp 150,000,000 for 2010. Check the cash flow statements of the two companies. a. Which companies display elements of cash flow difficulties? b. What factors caused you to reach this conclusion? c. What are the benefits of evaluating a company's cash flow statement?

CASH FLOW STATEMENT PT Sejahtera Sentosa For the Year Ended December 31, 2015 150.000.000 CASH FLOW FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 20.000.000 Gain on sale fixed asssets (185.200.000) Increase in receivables (45.000.000) Decrease in inventories 37.500.000 Increase in Account Payable 11.400.000 Decrease income tax payable (3.000.000) Net Cash Used in Operating Activities (164.300.000) (14.300.000) U 5 CASH FLOWS FROM INVESTING ACTIVITIES Sale of property and equipment 3 Net Cash Used in Investing Activities 204.900.000 204.900.000 9 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from long-term loans 2 Net Cash Provided by Financing Activities 3 Net increase in cash 4 Cash balance on January 1, 2015 5 Cash balance on January 31, 2015 20.000.000 20.000.000 210.600.000 66.000.000 276.600.000 Sheet1 Sheet2 Ready B CASH FLOW STATEMENT PT Jaya Utama For the Year Ended December 31, 2015 150.000.000 CASH FLOW FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation 160.000.000 Decrease in receivables 43.700.000 Increase in inventories (87.500.000) Decrease in Account Payable (8.100.000) Decrease income tax payable (8.600.000) Net Cash Used in Operating Activities 99.500.000 249.500.000 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Net Cash Used in Investing Activities (204.400.000) (204.400.000) 3 0 9 CASH FLOWS FROM FINANCING ACTIVITIES Receipts from long-term loans 1 Net Cash Provided by Financing Activities 2 Net increase in cash 23 Cash balance on January 1, 2015 24 Cash balance on January 31, 2015 25 9 18.500.000 18.500.000 63.600.000 66.000.000 129.600.000