What concerns are there about the financial strength of about any of the three corporations

Were the working capital accounts primarily sources of uses of cash

What concerns are there about the trend in working capital account case use for any of the three firms

Exhibit1 Alpha Corporation, Consolidated Statements of Cash Flows ($ millions) Year Ended June 30 1990 1991 1989 Operating Activities Loss from continuing operations Depreciation Amortization of capitalized software Gain from sale of investments and other assets Restructuring and other unusual items, net Changes in other accounts affecting operations $(320.6) 263.4 S(377.9) $623.5) 220.1 168.4 39.1 (16.6) 135.5 58.2 (119.0) 384.1 125.3 Accounts receivable Inventory Other current assets Accounts payable and other current liabilities Other 160.8 80.2 17.0 (91.3) 2.8 120.3 73.4 100.9 (1 (21.3) (45.2) (3.0) (13.0) 41.0 10.5 14.1 85.8 Net cash provided by continuing operations Net cash provided by (used in) discontinued operations Net cash provided by operating activities 76.5 125.2 89.3 46.8 Investing Activities 129.7) 157.0 25.3 (27.8) (303.6) 174.4) 242.0 407.3 Investment in dopreciable assets Proceeds from disposal of depreciable and other assets Proceeds from the sale of discontinued operations Investment in capitalized software Other Net cash provided by (used in) investing activities (59.5) (6.0) (13.0) 142 418.8 18.8 (254.8) Financing Activities 139.8 (2.6) 44.4 (222.6) 167.7 (Docrease) increase in short-term borrowings Proceeds from long-term debt Payments of long tem debt Proceeds from sale of Class B common stock Purchase ot treasury stock Dividends paid Net cash provided by (used in) financing activities 305.0 (126.5) (544.8) 8.7 5.0 7.5 (18.8) 325.8 113.9 (80.0 (598.8) Effect of changes in foreign exchange rates Increase (decrease) in cash equivalents Cash and equivalents at beginning of year Cash and equivalents at end of year 64.1 169.1 (89.6) 258.7 144.8 $233.210 Exhibit 2 Beta Corporation, Consolidated Statements of Cash Flows (S thousand) Year Ended December 31 1990 1991 1989 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers and employees Interest received Interest paid Income taxes paid $83,865 77,820) $73,273 $51,110 (65,480) (1,046) 7,000 (536) 233 (102) 3,919 Net cash generated by operating activities 3,670 Cash Flows from Investing Activities: Capital exponditures Marketable securities purchases (6,031) (8,000) (14,031) (4,600) (3,650) Net cash used in investing activities 4,600) (3,650) Cash Flow from Financing Activities: Net payments under working capital line of credit Not paymonts under equipment line of credit Principal payments under capital lease obligations (126) (213) (169) (5,000) 23,082 16,928 Proceeds (payment) of subordinated debt 4,400 639 3,515 Proceeds from the issuance of common stock Net cash provided by (used in) financing activitios Effect of exchange rate changes on cash Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of yoar 141 (2,198) 6,812 216 5,159 $5,375 3,535 1,624 $ 5,159 $12,187 Reconciliation of Net Income to Net Cash Generated by Operating Activities: Net income $ 6,323 $ 5,201 Adjustments to Reconcile Net Income to Net Cash Consumed by Operating Activities: 47 2,701 Bad debt provision Depreciation and amortization Amortization of original issue discount Loss on disposition of assets Compensation expense related to stock grants 4,028 208 58 40 85 Changes in Assets and Liabilities: (10,837) (951) (665) (1,550) ,043 (613) (Increase) in accounts receivable (Increase) decrease in inventory (Increase) decrease in deposits and other assets Increase (decrease) in accounts payable and 366 5,657 2,404) accrued expenses 1,799 3,253 Total adjustments Net cash generated by operating activities $3,9197,000$3,670 Exhibit 3 Gamma Corporation, Consolidated Statements of Cash Flows (S thousand) Years Ended June 29, 1991 June 30, 1990 1989 Cash Flows from Operating Activities: Net income/loss) (617 427 74.3931072,610 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and amortization Other adjustments to income (IncreaseVdecrease in accounts receivable 796,201 92,329 (241,357) 99,743 686,738 828,580 189,077 105,977 18,616 (47-239) (17,694) (105,614) (373.248) (62,942) 18,965 30,645 (75,502) 105,847 in inventories in prepaid expenses (90,602) 107,001 (201,560) 69,207 443,544 285.175 Increasen(docrease) in accounts payable Decrease) in taxes Increase in deterred revenues and customer advances Increase in restructuring reserve Increase in other liabilities Total adjustments Net cash fiows from operating activities 593,160 26,576 406,781 1,479,391 TR 1,658,328 1.359.681 1434.074 1,040,901 Gash Flows from Investing Activities: Purchase of plant, property, and equipment (Increase) of other assets, net Purchase of Kienzle business Net cash flows from investing activities (737,548) (1,027,625) 1223,038) (67,624) (55,782) (75,489) 261 1026,591) (1.103,114) 1.290,662) 188,729 Net cash flows from operating and investing activities 14.310 330,960 Net Flows from Financing Activities: Proceeds from issuance of dobt Payments to retire dobt Purchase of treasury shares Issuance of treasury shares, including tax benefits Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents 14,249 (112,426) (240,719) 239,65375e (99,243 17,661 (20,896) (270,231) 296,225 22,759 353,719 40,425 (153,245) (814,958) 230,733 (508,316) 2,163,580 $1,924,050 $2,008.983 $1,655,284 84,933)(697.045) 1,655,264 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 2,008,983 Exhibit1 Alpha Corporation, Consolidated Statements of Cash Flows ($ millions) Year Ended June 30 1990 1991 1989 Operating Activities Loss from continuing operations Depreciation Amortization of capitalized software Gain from sale of investments and other assets Restructuring and other unusual items, net Changes in other accounts affecting operations $(320.6) 263.4 S(377.9) $623.5) 220.1 168.4 39.1 (16.6) 135.5 58.2 (119.0) 384.1 125.3 Accounts receivable Inventory Other current assets Accounts payable and other current liabilities Other 160.8 80.2 17.0 (91.3) 2.8 120.3 73.4 100.9 (1 (21.3) (45.2) (3.0) (13.0) 41.0 10.5 14.1 85.8 Net cash provided by continuing operations Net cash provided by (used in) discontinued operations Net cash provided by operating activities 76.5 125.2 89.3 46.8 Investing Activities 129.7) 157.0 25.3 (27.8) (303.6) 174.4) 242.0 407.3 Investment in dopreciable assets Proceeds from disposal of depreciable and other assets Proceeds from the sale of discontinued operations Investment in capitalized software Other Net cash provided by (used in) investing activities (59.5) (6.0) (13.0) 142 418.8 18.8 (254.8) Financing Activities 139.8 (2.6) 44.4 (222.6) 167.7 (Docrease) increase in short-term borrowings Proceeds from long-term debt Payments of long tem debt Proceeds from sale of Class B common stock Purchase ot treasury stock Dividends paid Net cash provided by (used in) financing activities 305.0 (126.5) (544.8) 8.7 5.0 7.5 (18.8) 325.8 113.9 (80.0 (598.8) Effect of changes in foreign exchange rates Increase (decrease) in cash equivalents Cash and equivalents at beginning of year Cash and equivalents at end of year 64.1 169.1 (89.6) 258.7 144.8 $233.210 Exhibit 2 Beta Corporation, Consolidated Statements of Cash Flows (S thousand) Year Ended December 31 1990 1991 1989 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers and employees Interest received Interest paid Income taxes paid $83,865 77,820) $73,273 $51,110 (65,480) (1,046) 7,000 (536) 233 (102) 3,919 Net cash generated by operating activities 3,670 Cash Flows from Investing Activities: Capital exponditures Marketable securities purchases (6,031) (8,000) (14,031) (4,600) (3,650) Net cash used in investing activities 4,600) (3,650) Cash Flow from Financing Activities: Net payments under working capital line of credit Not paymonts under equipment line of credit Principal payments under capital lease obligations (126) (213) (169) (5,000) 23,082 16,928 Proceeds (payment) of subordinated debt 4,400 639 3,515 Proceeds from the issuance of common stock Net cash provided by (used in) financing activitios Effect of exchange rate changes on cash Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of yoar 141 (2,198) 6,812 216 5,159 $5,375 3,535 1,624 $ 5,159 $12,187 Reconciliation of Net Income to Net Cash Generated by Operating Activities: Net income $ 6,323 $ 5,201 Adjustments to Reconcile Net Income to Net Cash Consumed by Operating Activities: 47 2,701 Bad debt provision Depreciation and amortization Amortization of original issue discount Loss on disposition of assets Compensation expense related to stock grants 4,028 208 58 40 85 Changes in Assets and Liabilities: (10,837) (951) (665) (1,550) ,043 (613) (Increase) in accounts receivable (Increase) decrease in inventory (Increase) decrease in deposits and other assets Increase (decrease) in accounts payable and 366 5,657 2,404) accrued expenses 1,799 3,253 Total adjustments Net cash generated by operating activities $3,9197,000$3,670 Exhibit 3 Gamma Corporation, Consolidated Statements of Cash Flows (S thousand) Years Ended June 29, 1991 June 30, 1990 1989 Cash Flows from Operating Activities: Net income/loss) (617 427 74.3931072,610 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation and amortization Other adjustments to income (IncreaseVdecrease in accounts receivable 796,201 92,329 (241,357) 99,743 686,738 828,580 189,077 105,977 18,616 (47-239) (17,694) (105,614) (373.248) (62,942) 18,965 30,645 (75,502) 105,847 in inventories in prepaid expenses (90,602) 107,001 (201,560) 69,207 443,544 285.175 Increasen(docrease) in accounts payable Decrease) in taxes Increase in deterred revenues and customer advances Increase in restructuring reserve Increase in other liabilities Total adjustments Net cash fiows from operating activities 593,160 26,576 406,781 1,479,391 TR 1,658,328 1.359.681 1434.074 1,040,901 Gash Flows from Investing Activities: Purchase of plant, property, and equipment (Increase) of other assets, net Purchase of Kienzle business Net cash flows from investing activities (737,548) (1,027,625) 1223,038) (67,624) (55,782) (75,489) 261 1026,591) (1.103,114) 1.290,662) 188,729 Net cash flows from operating and investing activities 14.310 330,960 Net Flows from Financing Activities: Proceeds from issuance of dobt Payments to retire dobt Purchase of treasury shares Issuance of treasury shares, including tax benefits Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents 14,249 (112,426) (240,719) 239,65375e (99,243 17,661 (20,896) (270,231) 296,225 22,759 353,719 40,425 (153,245) (814,958) 230,733 (508,316) 2,163,580 $1,924,050 $2,008.983 $1,655,284 84,933)(697.045) 1,655,264 Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 2,008,983