Name of the Company: ALPHA CORPORATION

I Specific Analysis
1.1 Major Sources
a
b
c
d
e
1.2 Major Uses
a
b
c

2 Cash Flow from Operations (CFO) compared to Net Income > or <
Reasons;
a
b
c
d
e
3 CFO > Capital Expenditure (Capex)
4 CFO > Capex+ dividends
5 Excess Cash Invested
6 Other Major Items affecting cah flow
a
b
c

II Trends
1 Income
2 CFO
3 CAPEX
4 Dividends
5 Net borrowing
6 Working Capital

III Overall Assessment

Courtesy; Harvard Businees School case study

Calculations for Net borrowings
40425
-153245
-112820
y1

calculations for w.c

373,248
62942
-18,965
30,645
386580
 Year 3

Accounts Receivable
Inventory
Proceeds from disposal of depreciable and other assets
Proceeds from sale of discontinued operations
Proceeds from sale of Class B common

Investment in depreciable assets

Payments of long-term debt
Payments to Accounts Payables

CFO greater than Net Income/loss

Depreciation
Amortization of capitalized software
Working Capital Adjsustments (Decrease in Accounts Receivable & Inventory)
Net cash provided by (used in) discontinued operations
Restructuring and other unusual items, net
No
No
depreciable assets and capitalized softwares

Issuance & Repayment of Debt

Issuance of Class B stock & Purchase of treasury stock

Decrease
Increase
Decrease
Decrease
Increase
Decrease
 17661
-20896
-3235
y2

241357
-99743
90602
107001
125215
 Year 2

Accounts Receivable
Inventory
Proceeds from disposal of depreciable and other assets
Long-term borrowings
Proceeds from sale of Class B common

Investment in depreciable assets

Payments of long-term debt
Payments of short-term debt

CFO greater than Net Income/loss

Depreciation
Amortization of capitalized software
Working Capital Adjsustments (Decrease in Accounts Receivable & Inventory)
Net cash provided by (used in) discontinued operations
Restructuring and other unusual items, net
No
No
depreciable assets and capitalized softwares

Issuance & Repayment of Debt

Issuance of Class B stock & Purchase of treasury stock
Dividends

Increase
Increase
Decrease
Decrease
Decrease
Decrease
 14249
-112426
-98177
y3

-105997
18616
47239
-17694
-22448
 Year 1

Proceeds from disposal of depreciable and other assets

Short-term borrowings
Long-term borrowings
Proceeds from sale of Class B common
Restructuring & other unusual items

Investment in depreciable assets

Payments of long-term debt
Investment in capitalized software

CFO greater than Net Income/loss

Depreciation
Amortization of capitalized software
Working Capital Adjsustments (Increase in Accounts Payables)
Net cash provided by (used in) discontinued operations
Restructuring and other unusual items, net
No
No
depreciable assets and capitalized softwares

Issuance & Repayment of Debt

Issuance of Class B stock & Purchase of treasury stock
Dividends
Name of the Company: GAMMA CORPORATION

I Specific Analysis
1.1 Major Sources
a
b
c
d
e
1.2 Major Uses
a
b
c
2 Cash Flow from Operations (CFO) compared to Net Income > or <

Reasons;
a
b
c
d
e
3 CFO > Capital Expenditure (Capex)
4 CFO > Capex+ dividends
5 Excess Cash Invested
6 Other Major Items affecting cah flow
a
b
c
II Trends
1 Income
2 CFO
3 CAPEX
4 Dividends
5 Net borrowing
6 Working Capital

III Overall Assessment

Courtesy; Harvard Businees School case study

 Year 3 Year 2

Decrease in accounts receivable Decrease in inventories

Decrease in inventories Increase in accounts payable
Increase in deferred revenues and customer advances Increase in deferred revenues and customer advances
Proceeds from issuance of debt Increase in other liabilities
Issuance of treasury shares, including tax Issuance of treasury shares, including tax

Purchase of plant, property, and equipment and other assets Purchase of plant, property, and equipment
Payments to retire debt Purchase of other assets
Purchase of treasury shares Purchase of treasury shares
CFO > Net Income CFO > Net Income

Depreciation and amortization Depreciation and amortization

Other adjustments to income Other adjustments to income
Increase in restructuring reserve Increase in restructuring reserve
Increase in other liabilities & deferred revenue Increase in other liabilities & deferred revenue & A/P
Decrease in accounts receivable & Inventory Decrease in inventories
Yes Yes
Yes Yes
Capex and Purchase of Kienzle business Capex

Increase in prepaid expenses Payments to retire debt

Decrease in accounts payable Proceeds from issuance of debt
Taxes Taxes
($617,427) $74,393
$1,040,901 $1,434,074
($737,548) ($1,103,114)
0 0
($98,177) ($3,235)
($153,145) ($229,167)
 Year 1

Decrease in prepaid expenses

Increase in accounts payable
Increase in deferred revenues and customer advances
Proceeds from issuance of debt
Issuance of treasury shares, including tax

Purchase of plant, property, and equipment

Payments to retire debt
Purchase of treasury shares
CFO > Net Income

Depreciation and amortization

Other adjustments to income
Increase in other liabilities & deferred revenue & A/P
Decrease in prepaid expenses

Yes
Yes
Capex

Increase in inventories
Increase in accounts receivable
Taxes
$1,072,610
$1,479,391
($1,290,662)
0
($112,820)
$254,157
Name of the Company: GAMMA CORPORATION

I Specific Analysis
1.1 Major Sources
a
b
c
d
e
1.2 Major Uses
a
b
c

2 Cash Flow from Operations (CFO) compared to Net Income > or <
Reasons;
a
b
c
d
e
3 CFO > Capital Expenditure (Capex)
4 CFO > Capex+ dividends
5 Excess Cash Invested
6 Other Major Items affecting cah flow
a
b
c

II Trends
1 Income
2 CFO
3 CAPEX
4 Dividends
5 Net borrowing
6 Working Capital
III Overall Assessment

Courtesy; Harvard Businees School case study

Calculations for Net borrowings

40425
-153245
-112820
y1

calculations for w.c

373,248
62942
-18,965
30,645
386,580
 Year 3

Accounts Receivable
Inventory
Increase in deferred revenues and customer advances
Issuance of treasury shares, including tax benefits
Proceeds from issuance of debt

Purchase of plant, property, and equipment and other assets

Payments to retire debt
Purchase of treasury shares

CFO greater than Net Income

Depreciation and amortization

Other adjustments to Net Income
Working Capital Adjsustments (Decrease in Accounts Receivable & Inventory)
Increase in deferred revenues and customer advances
Increase in restructuring reserve
Yes
Yes
PPE, Kienzle business, other assets

Issuance & Repayment of Debt

Issuance of treasury shares, including tax benefits
Taxes

Decline
Decrease
Decrease
N/A
Decrease
Decrease
 17661
-20896
-3235
y2

241357
-99743
90602
107001
125215
 Year 2

Inventory
Accounts Payables
Issuance of treasury shares, including tax benefits
Proceeds from issuance of debt
Increase in deferred revenues and customer advances

Purchase of plant, property, and equipment

Purchase of other assets
Purchase of treasury shares

CFO greater than Net Income

Depreciation and amortization

Other adjustments to Net Income
Working Capital Adjsustments (Increase in Accounts Payables)
Increase in other liabilities
Increase in restructuring reserve
Yes
Yes
PPE, other assets

Issuance & Repayment of Debt

Issuance of treasury shares, including tax benefits
Taxes

Decline
Decrease
Decrease
N/A
Increase
Decrease
 14249
-112426
-98177
y3

-105997
18616
47239
-17694
-22448
 Year 1

Proceeds from issuance of debt

Issuance of treasury shares, including tax benefits
Accounts Payables
Prepaid Expenses
Increase in deferred revenues and customer advances

Purchase of plant, property, and equipment

Payments to retire debt
Purchase of treasury shares

CFO greater than Net Income

Depreciation and amortization

Other adjustments to Net Income
Working Capital Adjsustments (Increase in Accounts Payables and decrease in prepaid expenses)
Increase in deferred revenues and customer advances
Increase in other liabilities
Yes
Yes
PPE, other assets

Issuance & Repayment of Debt

Issuance of treasury shares, including tax benefits
Taxes
Name of the Company: BETA CORPORATION

I Specific Analysis
1.1 Major Sources
a
b
c
d
e
1.2 Major Uses
a
b
c

2 Cash Flow from Operations (CFO) compared to Net Income > or <
Reasons;
a
b
c
d
e
3 CFO > Capital Expenditure (Capex)
4 CFO > Capex+ dividends
5 Excess Cash Invested
6 Other Major Items affecting cah flow
a
b
c

II Trends
1 Income
2 CFO
3 CAPEX
4 Dividends
5 Net borrowing
6 Working Capital

III Overall Assessment

Courtesy; Harvard Businees School case study

 Year 3

Cash Received from Customers

Proceeds from common stock
Interest received
Increase in Accounts Payable

Cash paid to suppliersand employees

Inome taxes paid
Payment of subordinated debts

NI > CFO

Significant increase in Accounts Recievable

Increase in depreciation and ammortization
Increase in Accounts Payables

No
No
Year 2
Year 1
 $74,393 $1,072,610

Cash Flows from Investing Activities:

Purchase of plant, property, and equipment -737,548
(55,782) -1,027,625
(Increase) of other assets, net assets -75,489
Purchase of Kienzle business (233,261) -
Net cash flows from investing activities
-737,548 -1,103,114

Cash Flows from Operating Activities:

Net income/(loss)
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and amortization
Other adjustments to income
(Increase)/decrease in accounts receivable -105,977 241,357
(Increase)/decrease in inventories -18,616 -99,743
(Increase)/decrease in prepaid expenses 47,239 90,602
Increase/(decrease) in accounts payable -17,694 107,001
(Decrease) in taxes
Increase in deferred revenues and customer advances 92,222 69,207
Increase in restructuring reserve 593,160 443,544
Increase in other liabilities 1,263 285,175
Total adjustments
Net cash flows from operating activities
-153,145 -229,167
-1,223,038
-67,624
-

-1,290,662

373,248
62,942
-18,965
30,645

105,847
-
26,576

254,157