Question

In: Accounting

Company             Cash from Operations    Cash from Investing        Cash from Financing Microsoft       &n

Company             Cash from Operations    Cash from Investing        Cash from Financing

Microsoft             $7,951                                 $ (6,176)                           $ 5,541

Ebay                         9,969                                      3,579                                  (9,694)

TJ MAX                 (2,498)                                        438                                     396

Each of these companies shows a different cash flow pattern. Explain what these patterns might indicate about each company.

Solutions

Expert Solution

Company Cash from operation Cash from investing Cash from financing
Microsoft 7951 -6176 5541
Ebay 9961 3576 -9694
TJ Max -2498 438 396
Positive number indicates the section as positive cash flow from that section.
Negative cash flow indicates that negative cash flow from that section
Cash Frop operation: As per above TJ Max have the negative cash flow from operative activities and
Microsoft and ebay have the positive cash flow
Cash flow from ivnesting: In this section if the there is some purhcase of investment is more than
the sale of investment than it shows negative and otherwise it shows positive
So it means microsoft have purchase is more so he have the negative cash flow and other have positive cash flow
Cash from financing: In this section if we issue some shares, bonds debebtures than it shows positive and if
we redemmed the bonds , purchase the shares , issue of dividend thant is will be shows the negative
So it means Ebay have the negative cash flow from financing activities and microsoft and TJ max have the positive cash flow

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