Refer to the annual report of MCI and answer the questions below.

a. What major reasons explain the large increase in MCI’s cash position from 1993 to 1994?

b. Cash from operating activities ($2,355) is calculated in two different ways on the statement of cash flows. Discuss the differences and the relative usefulness to the reader of the two methods.

c. What were MCI’s main investing activities in 1994 and how were they financed?

d. Describe the major preferred stock transactions entered into by MCI in 1992 and 1993.

e. Does MCI pay large amounts in dividends? Explain.

f. How much cash was collected over the three-year period on stock issuances associated with employee compensation plans, and where is MCI getting the stock issued for this purpose?