Beecham Limited began operations in early 1995. Summaries of the statements of cash flows for 1995, 1996, and 1997 follow. 1997 1996 1995 Net cash provided (used) by operating activities $ ? $(252) $ ? Net cash provided (used) by investing activities 150 9 • (400) Net cash provided (used) by financing activities (200) 400 800 Net increase (decrease) in cash balance $ ? $ (2) $ 78 Beginning cash balance 76 9 • 0 Ending cash balance $156 $ 76 $ ? REQUIRED:

a. Compute the missing dollar amounts, and briefly comment on the company’s cash man¬ agement policies during the three-year period.

b. Does the company appear to have faced any solvency problems during the period? Explain your answer.