Assignment: Analyzing Companies based on the Statement of Cash Flows-Discussion Essay
A condensed Statement of Cash Flows is presented below for each of three companies. Based on the information provided for each company,
1) Identify the growth stage and assess the financial health of each company.
2) Based on your analysis, rank the three companies in terms of risk to the investor and explain your rankings.
3) Identify the company you would be most likely to invest in and explain why.
Be sure to focus on the assigned journal article, "Teaching the Statement of Cash Flows," before attempting this essay. You are limited to 400 words for this essay.
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Company One-Statement of Cash Flows For the year ending December 31, 2015
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Cash from Operating Activities
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$ (298,000)
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Cash from Investing Activities
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(560,000)
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Cash from Financing Activities
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938,000
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Net Change in Cash
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$ 80,000
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Beginning Cash, January 1, 2015
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17,275
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Ending Cash, December 31, 2015
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$ 97, 275
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Company Two-Statement of Cash Flows For the year ending December 31, 2015
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Cash from Operating Activities
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$ (365,800)
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Cash from Investing Activities
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(290,000)
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Cash from Financing Activities
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38,500
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Net Change in Cash
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$ (114,300)
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Beginning Cash, January 1, 2015
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1,403,445
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Ending Cash, December 31, 2015
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$ 1,289,145
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Company Three-Statement of Cash Flows For the year ending December 31, 2015
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Cash from Operating Activities
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$ 522,000
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Cash from Investing Activities
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(134,000)
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Cash from Financing Activities
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53,300
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Net Change in Cash
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$ 441,300
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Beginning Cash, January 1, 2015
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1,639,000
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Ending Cash, December 31, 2015
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$ 2,080,300
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