Using the statement of cash flow provided:

• Does the company generate sufficient cash from the use of current assets and liabilities (or operating activities)?
• What are its major sources (inflows) and uses (outflows) of cash during the period?
• Did the companys cash balance increase or decrease during the period? How much?
• Based on the cash flows from three activities, is the company healthy overall? Why do you say so?

Cash Flow Statement

Cash flow from operating activities	$200,000
Cash flow from investing activities:
Cash paid for equipment purchase	-150,000
Cash paid for intangible assets	-100,000
Net cash used by investing activities	-250,000
Cash flow from financing activities:
Stock issuance	30,000
Cash paid for dividends	-40,000
Cash paid for bank loan	-35,000
Net cash used by financing activities	-45,000
Decrease in cash balance	-95,000
Add: beginning cash balance	100,000
Ending cash balance	$5,000