Alpha Corporation

Items 1991 1990 1989

1 Major sources Disposal of assets: 157 + 25.3 Disposal of assets: 242 Proceeds from LTD: 213.3
CFO: 125.2 Proceeds from discontinued operations: Sale of assets: 94.1
407.3 CFO: 46.8
CFO: 89.3

Major Uses Net repayment LTD: 82 Repayment of LTD: 377.1 CAPEX: 363.1
CAPEX: 157.5 Repayment of STD: 222.6
CAPEX: 217.5

2 CFO Vs. Net CFO: 125.2 CFO: 89.3 CFO: 46.8

Income (NI) NI: (377.9) NI: (623.5) NI: (320.6)
---------------------------------------------- ----------------------------------------------- -----------------------------------------------
Depreciation: 168.4 + 41.4 Depreciation: 220.1 + 58.2 Depreciation: 263.4 + 39.1
Restructring: 135.5 – 16.6 Restructuring: 384.1 – 119 Restructuring: 125.3

3 CFO > CAPEX No (125.2 vs 129.7+27.8) No (89.3 vs 174.4+43.1) No (46.8 vs 303.6+59.5)

Capex > Depn. No (157.5 vs 209.8) No (217.5 vs 278.3) Yes (371.1 vs 302.5)
CFO > Capex + No No No
dividend. Source: Sale of assets + LTD Source: Sale of Assets + LTD Source: LTD + STD
If no, source?
Dividend No 7.2 26.0
4 Excess cash CFO < CFI. No excess cash CFO < CFI. No excess cash CFO < CFI. No excess cash
invested
II Other major items Sale of assets, payment of LTD Payment of LTD, STD CAPEX, LTD and STD
affecting cash Sale of Assets, Restructuring
flows
III TRENDS
Income Loss has decreased Loss has increased
CFO CFO has increased CFO has increased
Capex CAPEX has decreased CAPEX has decreased
Dividends No dividend Dividend has decreased
Net borrowings Net borrowing has decreased Net borrowing has decreased
Working Capital Working Capital has increased Working capital has increased

Overall assessment: Company has reduced long term debt and its working capital has increased steadily. Company’s loss has decreased, however CFO and CAPEX
have also decreased. Company is trying to reduce debt at the expense of growth.
 Beta Corporation
Items 1991 1990 1989
1 Major sources CFO: $3,919 CFO: $7,000 CFO: $3,670
Issuance of common stock: $23,082 Proceeds of Subordinated Debt: $4,400
Issuance of common stock: $639

Major Uses Capital Expenditure: $6,031 Capital Expenditure: $4,600 Capital Expenditure: $3,650
Marketable securities: $8,000 Repayment of loans/obligations: $2,339 Repayment of loans/obligations: $1,524
Payment of subordinated debt: $5,000

2 CFO Vs. Net CFO: $3,919 CFO: $7,000 CFO: $3,670

Income (NI) NI: $6,323
---------------------------------------------
Depreciation and Amortization: $4,028
Increase in accounts receivable: $10,837
Increase in accounts payable and accrued
expenses: $5,657
NI: $5,201 NI: $417
---------------------------------------------- -----------------------------------------------
Depreciation and Amortization: $2,701 Depreciation and amortization: $2,231
Increase in A/R and A/P: $1,550 and $2,067

3 CFO > CAPEX No. (CFO: $3,919 and CAPEX: $ 6,031) Yes. (CFO: $7,000 and CAPEX: $4,600) Yes. (CFO: $3,670 and CAPEX: $3,650)
Capex > Depn. Yes Yes Yes
CFO > Capex + No. Yes Yes
dividend. Source: Proceeds from issuance of common
If no, source? stock
Dividend No No No
4 Excess cash CFO < CFI hence no excess cash CAPEX < CFO. Net payments under CAPEX<CFO, Net payments under working
invested working capital line of credit capital and equipment line of credit,
II Other major items Repayment of debt: $1,154 Issuance of common stock: $141
affecting cash flow
III TRENDS
Income Income has increased Income has increased
CFO CFO has reduced CFO has increased
Capex CAPEX has increased CAPEX has increased
Dividends NA NA
Net borrowings Net borrowings have reduced Net borrowing have reduced
Working Capital Change in WC: $6,796. Change in WC: $1,367 Change in WC: $ (798)
WC has increased WC has increased
Overall assessment: Company’s income and CAPEX are increasing. Through issuance of common stock, company has reduced borrowing as well. For
2 out of 3 years, company has managed to compensate CAPEX from cash flow from operations. It proves, company is growing steadily and is in
healthy condition.
 Gamma Corporation

Items 1991 1990 1989

1 Major sources Treasury shares: 239,653 Treasury shares: 270,231 Treasury shares: 230,733
Issuance of Debt: 14,249 Issuance of Debt: 17,661 Issuance of Debt: 40,425
CFO: 1,040,901 CFO: 1,434,074 CFO: 1,479,391

Major Uses CAPEX: 737,548 + 55782 CAPEX: 1,103,114 + 75,498 CAPEX: 1,290,662 + 67,624
Kienzle Acquisition: 233,261 Purchase of Treasury Shares: 814,958

2 CFO Vs. Net CFO: 1,040,901 CFO: 1,434,074 CFO: 1,479,391

Income (NI) NI: (617,427) NI: 74,393 NI: 1,072,610
----------------------------------------------- ----------------------------------------------- -----------------------------------------------
Depreciation: 828,560 Depreciation: 796,201 Depreciation: 686,738
Restructuring Reserve: 593,160 Restructuring Reserve: 443,544

3 CFO > CAPEX Yes (1,040,901 vs 1,026,591) Yes (1,434,074 vs 1,103,114) Yes (1,479,391 vs 1,290,662)
Capex > Depn. No (793,330 vs 828,560) Yes (1,103,114 vs 796,201) Yes (1,290,662 vs 686,738)
CFO > Capex + Yes Yes Yes
dividend.
If no, source?
Dividend No No No
4 Excess cash Yes, $70,092 Yes, $406,449 Yes, $256,353
invested
II Other major items Depreciation & Amortization Purchase of treasury shares, Purchase of treasury shares
affecting cash Kienzel Business acquisition CAPEX, CAPEX
flows Restructuring Expenses Restructuring Expenses
III TRENDS
Income Income has decreased. Income has decreased.
CFO CFO has decreased. CFO has decreased.
Capex CAPEX has decreased. CAPEX has decreased.
Dividends No dividends No dividends
Net borrowings Net borrowing has decreased Net borrowing has decreased
Working Capital Working capital has increased Working capital has increased

Overall assessment: Income, expenditure, profit have decreased. Company is going facing declining business operations.