cash flow - alpa beta gamma
TRANSCRIPT
Cash Flow - Analysis
•Alpha•Beta•Gamma
1a Major sources of cashALPHA
Sources 1991 1990 1989
Increase in short term borrowings
- - 139.8
Proceeds from disposable of
depreciable and other assets
157.0 242.0 94.1
Proceeds from the sale of discontinued
operation
25.3 407.3 -
Proceeds from long term debts
44.4 167.7 305.0
Proceeds from sale of class B common stock
5.0 8.7 17.5
Other - - 14.2
BETASources 1991 1990 1989
Proceeds of subordinate debt
- - 4400
Proceeds from the issuance of common stock
23.082 141 639
Sources 1991 1990 1989
Proceeds from issuance of debt
14,249 17,661 40,425
Issuance of treasury shares, including tax benefits
239,653 296,225 230,733
GAMMA
1b. USES OF CASH ALPHA
Uses 1991 1990 1989
Investment in depreciable assets
(129.7) (174.4) (303.6)
Investment in capitalized software
(27.8) (43.1) (59.5)
Other (6.0) (13.0) -
Decrease in short term borrowings
(2.6) (222.6) -
Payment of long term debt
(126.5) (554.8) (91.7)
Dividend paid - (7.2) (26.0)
Purchase of treasury of stock
(0.3) (0.6) (18.8)
Uses
1991 1990 1989
Capital expenditure (6,031) (4600) (3650)
Marketable securities purchases
(8000) - -
Net payments under working capital line of credit
- (2000) (860)
Net payments under equipments line of credit
(985) (126) (388)
Principal payment under capital lease obligation
(169) (213) (276)
Payments of subordinated debt
(5000) - -
BETA
Uses 1991 1990 1989
Payments to retire debt
(112,426) (20,896) (153,245)
Purchase of treasury shares
(240,719) (270,231) (814,958)
Purchase of plant, property and equipment
(737,548) (10,27,625) (12,23,038)
Increase of other asset net
(55,782) (75489) (67,642)
Purchase of Kinley business
(233,261) - -
GAMMA
2)22. Cash flow from operating activities > Net Income
ALPHA
Particulars 1991 1990 1989
Net income $(377.9) $(623.5) $(320.6)
Net income from operating activities
125.2 89.3 46.8
REASONS :
Adding non cash expenses (depreciation, amortization, gain from sale of investments etc)
Particulars 1991 1990 1989
Net income $6,323 $5,201 $417
Net income from operating activities
3,919 7,000 3,670
Difference between net income and net income from operating activities
BETA
REASONS:Depreciation and amortization is the major reason affecting the net income
Particulars 1991 1990 1989Net income $(617,427) $(74,393) $(1,072,610)
Net income from operating activities
1,040,901 1,434,074 1,479,391
Cash flow from operating activities> Net Income
GAMMA
REASONS :
Adding non cash expenses
3) Difference between operating activities and capital expenditure
Particulars 1991 1990 1989
Operating activities 125.2 89.3 46.8
Capital expenditure1) Investment in
depreciable assets
2) Investment in capitalize software
3) Other
(129.7)
(27.8)
(6.0)
(174.4)
(43.1)
(13.0)
(303.6)
(59.5)
14.2
No, the firm was not able to generate cash from operating activities because there was a huge investment made in depreciable assets
Difference between operating activities and capital expenditure
BETA
Particulars 1991 1990 1989
Operating activities
3919 7000 3670
Capital expenditure
(6031) (4600) (3650)
REASONS
For 1991 the operating activities < capital expenditure
For the other two years operating activities> capital expenditure
Difference between operating activities and capital expenditure
GAMMAParticulars 1991 1990 1989
Operating activities 1,040,901 1,434,074 1,479,391
Capital expenditure1) Purchase of plant,
property and equipment
2) Purchase of Kienzle business
(737,548)
(233,261)
(1,027,625) (1,223,038)
Yes, firm was able to generate cash from operating activities
4) ALPHA 1989 1990 1991
1. Net cash provided by operating activities
46.8 89.3 125.2
2. Capital expenditure (348.9) (230.5) (163.5)3. Dividend paid (26) (7.2) -
Company did not cover both the capital expenditure and the firm’s dividend payments during all the 3 years
1991 1990 1989
1. Net cash provided by operating activities
3919 7000 3670
2. Capital expenditure (6,031) (4600) (3650)
Excess cash - 2400 20
5)Investment of excess cash Beta
Investment of excess cash for the year 1990
1) Net payments under working capital line of credit-(2000)
2) Net payments under equipment line of credit-(126)
3) Principal payment under capital lease obligation-(213)
Investment of excess cashGAMMA
1991 1990 1989
1. Net cash provided by operating activities
1,040,901 1,434,074 1,479,391
2. Capital expenditure1) Purchase of plant,
property and equipment2) Purchase of kienzle
business
(737,548)
(233,261)
(1,027,625) (1,223,038)
Excess cash 70092 4,06,449 2,56,353
1) Payments to retire debt in the year 1990 for amount (20896)
2) Purchase of treasury shares in the year 1990(270,231)
Sources of Cash 1991 1990 19891. Net cash provided by
operating activities 125.2 89.3 46.8
2. Capital expenditure1) Investment in
depreciable assets2) Investment in capitalize
software3) Other
(129.7)
(27.8)
(6.0)
(174.4)
(43.1)
(13.0)
(303.6)
(59.5)
14.23. Dividend paid (26) (7.2) (26)
6)Sources of cash to pay capital expenditure/dividends(ALPHA)
The company generated funds to pay its capital expenditure or dividends
1) Proceeds from disposable of depreciable and other assets -
2) Proceeds from the sale of discontinued operations
3) Restructuring and other unusual items
6)Sources of cash to pay capital expenditure/dividends(BETA)
Sources of Cash 1991 1990 1989
1. Net cash provided by operating activities
3919 7000 3670
2. Capital expenditure (6,031) (4600) (3650)
The company generated funds to pay its capital expenditure or dividends
1) Issuance of common stock
Sources of Cash 1991 1990 1989
1. Net cash provided by operating activities
1,040,901 1,434,074 1,479,391
2. Capital expenditure1) Purchase of plant,
property and equipment2) Purchase of kienzle
business
(737,548)
(233,261)
(1,027,625) (1,223,038)
6)Sources of cash to pay capital expenditure/dividends(Gamma)
The company generated funds to pay its capital expenditure or dividends
1) Issuance of treasury shares, including tax benefits
2) Proceeds from issuance of debt
Particulars 1991 1990 1989
Current Assets 1) Accounts
receivable2) Inventory3) Other current
assets
160.880.217.0
73.4100.9(1.2)
(45.2)(3.0)(13.0)
Total 258 173.1 (61.2)
Current Liabilities1) Accounts payable2) Others (91.3)
2.8
(21.3)
14.1
41.0
(10.5)
Total (88.5) (7.2) 30.5
(CA-CL) 346.5 180.3 (91.7)
7) ALPHA
Particulars 1991 1990 1989 Current Assets 1) Accounts
receivable2) Inventory3) Other current
assets
(10,837)(951)(665)
(613)(810)366
(1,550)1043(762)
Total (12453) (1057) (1269)Current Liabilities1) Accounts
payable 5657 (310) 2067
Total 5657 (310) 2067
(CA-CL) (18110) (1367) (3336)
BETA
Particulars 1991 1990 1989
Current Assets 1) Accounts
receivable2) Inventory3) Prepaid Expenses
10597718,616(47,339)
(241357)99,743(90602)
(373,248)(62,942)18965
Total 77354 (232216) (417225)
Current Liabilities1) Accounts payable2) Customer
advances3) Other liabilities4) Restructuring
reserve
(17694)
922221263593160
107001
69207285175443544
30645
10584726576-
Total 668951 904927 163068
(CA-CL) 746305 (1137143) (580293)
GAMMA
CONCLUSION !!