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Computation of Cash Flow: Sources and Uses of Cash

From the financial data from three competitors in the same industry, the attached formatted MS Excel spreadsheet performs a comparative analysis of the companies.

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For your convenience, I have attached a formatted MS Excel file containing the information below.

Financial data from three competitors in the same industry follow.
1. Which of the three competitors is in the strongest position as shown by its statement of cash flows?
2. Analyze and discuss the strength of Z-Best's cash flow on total assets ratio to that of Lopez.

Note: Since the column headers were missing from your original post, I named the columns A, B, and C for identification purposes.

Company A Company B Company C

Cash provided (used) by operating activities 80,000 70,000 (34,000)
Proceeds from sale of operating assets 36,000
Purchase of operating assets (38,000) (35,000)
Cash provided (used) by financing activities
Proceeds from issuance of debt 33,000
Repayment of debt (700)
Net increase (decrease) in cash 35,000 35,000 35,000
Average total assets 800,000 650,000 400,000

1) BEST Company A has a postive cash flow from its operating activities. It used some of its
available ...

Solution Summary

This posting contains a formatted MS Excel spreadsheet that contains an example on the calculation of a company's cash flow.