Sources and Uses of Cash

1. Compare and contrast cash flow and profit.
2. Evaluate the balance sheet for Fractal Antenna Systems (FAS). How does the company source and use cash?
3. Demonstrate the process of how to calculate and identify sources and uses of cash.
4. Based on your analysis, what did you learn about the decisions made regarding cash management for FAS? Do you agree or disagree with the managers approach? Explain.

The following information was reported for 20X2 and 20X3 for Fractal Antenna Systems:

Balance Sheet (in millions$)	20X2	20X3
Cash and Securities	462	545
Accounts Receivable	267	309
Inventory	541	629
Other current assets	142	167
Total Current Assets	1,412	1,650
Gross property & equipment	6,410	7,449
Accumulated depreciation	2,714	4,015
Net property and Equipment	3,696	3,434
Goodwill	1,069	1,069
Total Assets	6,177	6,153
Accounts Payable	91	110
Short-term debt	842	814
Current portion long-term debt	165	200
Accrued expenses	120	134
Total current liabilities	1,218	1,258
Long-term debt	1,389	1,189
Deferred taxes	370	454
Shareholder's equity	3,200	3,252
Total liabilities and equity	6,177	6,153