Question
Using Statement of Cash Flow Information to Assess Company Life-Cycle Stage Use the following information, taken from the 2018 statement of cash flows from each
Using Statement of Cash Flow Information to Assess Company Life-Cycle Stage Use the following information, taken from the 2018 statement of cash flows from each of the respective companies, to complete the requirements.
Net | Cash from | Cash from | Cash from | |
---|---|---|---|---|
$ millions | Income | Operations | Investing | Financing |
Arconic Inc | $642 | $217 | $565 | $(649) |
Carmax Inc | 842 | 163 | (309) | 186 |
Flowserve Corp | 120 | 191 | (81) | (173) |
Fluor Corp | 225 | 162 | 1 | (140) |
Required a. Identify each companys life-cycle stage (introduction, growth, maturity, or decline). b. Rank-order each company from least to most mature. (Hint: All four companies have cash from operations of about $200 million. Graph the cash from investing and from financing, and then use the graphic [showing revenue, income, and cash flow by life cycle] to evaluate the relative size of the three types of cash flow.)
Life Cycle Rank | ||
---|---|---|
Company | Life-Cycle Stage | (4 is most mature) |
Arconic Inc | AnswerIntroductionGrowthMaturityDecline | Answer1234 |
Carmax Inc | AnswerIntroductionGrowthMaturityDecline | Answer1234 |
Flowserve Corp | AnswerIntroductionGrowthMaturityDecline | Answer1234 |
Fluor Corp | AnswerIntroductionGrowthMaturityDecline | Answer1234 |
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