Question
The Ammar Computer Inc. was founded 15 years ago by Ammar Tahleel a computer programmer. The small initial investment to start the company was made
The Ammar Computer Inc. was founded 15 years ago by Ammar Tahleel a computer programmer. The small initial investment to start the company was made by Ammar Computer Inc. and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short and long-term debt. Recently the company has developed an Electronic Device (ED). The ED uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The ED even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on the market. In order to introduce the ED, the company requires significant external investment. Ammar Computer Inc. has made the decision to seek this external financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Here is the balance sheet and income statement for the two most recent years:
Prepare the financial statement of cash flows and the accounting statement of cash flows.
b. Describe the strengths and weaknesses of Ammar Compute. Inc. cash flows.
C.. Compare which cash flow statement is more accurate in describing the cash flows of the company.
b. In light of your previous answers, comment on Ammar Computer Inc. expansion plans
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started