Identify the growth stage

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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.

Company One-Statement of Cash Flows For the year ending December 31, 2015   

Cash from Operating Activities

$ (298,000)

Cash from Investing Activities

(560,000)

Cash from Financing Activities

938,000

Net Change in Cash

$ 80,000

Beginning Cash, January 1, 2015

17,275

Ending Cash, December 31, 2015

$ 97, 275

 

Company Two-Statement of Cash Flows For the year ending December 31, 2015   

Cash from Operating Activities

$ (365,800)

Cash from Investing Activities

(290,000)

Cash from Financing Activities

38,500

Net Change in Cash

$ (114,300)

Beginning Cash, January 1, 2015

1,403,445

Ending Cash, December 31, 2015

$ 1,289,145

 

Company Three-Statement of Cash Flows For the year ending December 31, 2015   

Cash from Operating Activities

$ 522,000

Cash from Investing Activities

(134,000)

Cash from Financing Activities

53,300

Net Change in Cash

$ 441,300

Beginning Cash, January 1, 2015

1,639,000

Ending Cash, December 31, 2015

$ 2,080,300

Reference no: EM131351419

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