In: Finance

# Cash Flow Flag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share...

 Cash Flow Flag INCOME STATEMENT Fiscal year ends in December. USD in millions except per share data. 2013-12 2014-12 2015-12 2016-12 2017-12 TTM Revenue 220156 200494 129925 110215 134674 154945 Cost of revenue 148882 136464 90788 78778 95114 110718 Gross profit 71274 64030 39137 31437 39560 44227 Costs and expenses Sales, General and administrative 4510 4494 4443 4684 4448 4358 Interest expense 201 307 731 Other operating expenses 30859 28334 29852 28712 25584 21980 Total costs and expenses 35369 32828 34295 33597 30339 27069 Income before income taxes 35905 31202 4842 -2160 9221 17158 Provision for income taxes 14308 11892 132 -1729 -48 2903 Net income from continuing operations 21597 19310 4710 -431 9269 14255 Other -174 -69 -123 -66 -74 -50 Net income 21423 19241 4587 -497 9195 14205 Net income available to common shareholders 21423 19241 4587 -497 9195 14205 Earnings per share Basic 11.18 10.21 2.46 -0.27 4.88 7.49 Diluted 11.09 10.14 2.45 -0.27 4.85 7.43 Weighted average shares outstanding Basic 1916 1884 1868 1872 1883 1897 Diluted 1932 1898 1875 1873 1898 1914 EBITDA 41399 36519 17327 17498 28877 36791

Write one-page of text that discusses the overall trend assessment regarding positive and negative values of this company’s Statement of Cash Flows for the last three years minimum. According to the Statement of Cash Flows, is this corporation performing well? Why or why not? Also discuss the trends of this company's Free Cash Flow.

## Solutions

##### Expert Solution

The above statement tells us about the cash flow position of company for past 5 years from which it can be said

• Net income till 4 years is decreasing compared to 1 year which is due to fall in companies sales revenue that is revenue decreased from 220156 to 134674 and than increased to 154945
• Expenses are in line with revenues they are also decreasing as revenue is decreasing .
• company started to increase its net income from 5 year which is due to increase in revenue and decrease in operating expenses.
• Negative net income in 4th year is due to cost been more than revenue.
• company has also involved in some loan or funding activity as it shows interest expenses are paid.
• Company has approx equal no of shares both in form of basic and convertible to equity shares.

Free cash flow means amount available after payment of capital expenditures and operating expenses from cash flow from operations it is calculated as

CASH FLOW FROM OPERATIONS - CAPITAL EXPENDITURES

OR

NET INCOME+NON CASH EXPENSES- INCREASE IN WORKING CAPITAL- CAPITAL EXPENDITURES.

So as there are no capital expenditures in 5 years so free cash flow available is equal to net income for all the years.

Still it can not be perfectly commented for free cash flow as there is no balance sheet available  and we do not know about capital expenditures as interest is also paid

The company was not performing good till 4 years but from 5 year there is boost in the revenues and also positive net income.

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