Statement of Cash Flows

i. Examine the changes in A/R, Inventory, and Payables and Accrued Comp. from 2015 to 2019. (1). Look at A/R changes versus sales. Based on what you see do you think it is desirable for Mydeco to generate cash through decreased A/R? Can you imagine a situations where declining A/R might be beneficial? (Hint: look at Apples situation below.) (2.) Is the company currently borrowing more or less as a percentage of cost of goods sold from its suppliers and employees over the 2015-2019 timeframe? Where most of the additional borrowing come from?

ii. Has operating cash flow improved from 2018 to 2019? What was the key contributor to that improvement?

iii. Name one piece of information you need in addition to the financial statements which would help you assess whether Mydeco management has performed well over the 2015 to 2019 period.

Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg. in Payables & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock. Price 2015 18.0 27.3 3.9 (2.9) 2.2 48.5 (25.0) (25.0) (5.4) 2016 3.0 27.0 18.8 2.8 (1.1) 50.5 (25.0) (25.0) (5.4) 2017 6.3 34.3 (0.0) 2.5 4.7 47.8 (100.0) (100.0) (5.4) 2018 12.7 38.4 (7.1) (3.3) 5.9 46.6 (75.0) (75.0) (5.4) 2019 21.7 38.6 (9.2) (3.6) 6.5 54.0 (40.0) (40.0) (6.5) (5.4) 18.1 $7.92 (5.4) 20.1 $3.30 75.0 69.6 17.4. $5.25 25.0 19.6 (8.8) $8.71 (6.5) 7.5 $10.89 Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg. in Payables & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock. Price 2015 18.0 27.3 3.9 (2.9) 2.2 48.5 (25.0) (25.0) (5.4) 2016 3.0 27.0 18.8 2.8 (1.1) 50.5 (25.0) (25.0) (5.4) 2017 6.3 34.3 (0.0) 2.5 4.7 47.8 (100.0) (100.0) (5.4) 2018 12.7 38.4 (7.1) (3.3) 5.9 46.6 (75.0) (75.0) (5.4) 2019 21.7 38.6 (9.2) (3.6) 6.5 54.0 (40.0) (40.0) (6.5) (5.4) 18.1 $7.92 (5.4) 20.1 $3.30 75.0 69.6 17.4. $5.25 25.0 19.6 (8.8) $8.71 (6.5) 7.5 $10.89