Question 1: Statement of Cash Flows

The statement of cash flow reports cash flow amounts including 1) operating cash flow, 2)

investing cash flows, and 3) financing cash flows.

REQUIRED: Describe the corporate strategy of a company that has a positive operating cash flow,

an investing cash flow that is negative, and a financing cash flow that is positive.

Question 2: Common-Size Balance Sheets

Analyzing common-size balance sheet for assets. Please open the attachment Common-Size

Assets. Three companies are shown for assets only. They are in percentage terms only. Total

assets equal 100%. This allows us to compare the assets held by the companies regardless of size.

This data was taken from the Morningstar website. We will be using this website for future

assignments. There is no fee involved to get the data we need. There will be more about this in

the weeks to come. The three companies are Texas Instruments (TXN), Intel Corp (INTC), and

Qualcomm Inc (QCOM). They are all in the same sector (Information Technology) and industry

(Semiconductors).

REQUIRED: Compare these three companies and make note of significant differences between

them. Pick out several items that stand out. Do not comment on every line. You should identify

at least five items. You do not have to do any research beyond the numbers. You do not have to

consult the Morningstar website for this assignment. This is designed to get you accustomed to the data that is available for analysis