Analysis of Alpha, Beta and Gamma corporations

Alpha Corporation
In 1990, there was a decrease in cash & equivalent at the end of the year. There was a significant rise
in cash & equivalent in 1991. Decrease in short term borrowing and payments of long term debt lead
to negative income from financing activities. Decrease in depreciation compared to previous years
and decrease in accounts receivables in big numbers has increased the net cash from operating
activities. In terms of cash flow Alpha Corporation has significantly done well compared to previous
years.

Beta Corporation
Cash and cash equivalent in the year 1991 has increased twice in numbers compared with previous
years. Huge increase in accounts receivable and payment of income taxes has decreased the net
cash generated from operating activities. Large amount is been generated from issuance of common
stock resulting in good inflow of cash from financing activities. . A lot of cash is used in investing
activities over and above Beta manages to generate twice the amount of cash generated from
previous years.

Gamma corporation
Gamma corporation was running in losses however had generated huge amount of cash even
though quite less than previous year. Decrease in purchase of inventories and decrease in accounts
receivables had significantly increased the net cash flow from operating activities. Purchase of fixed
asset was comparatively less than previous year and no proceeds had led to lot of cash outflow from
investing activities. Huge amount of cash has been flown out from financing activities and losses in
the book of account despite the fact Gamma had generated good amount of cash. Less than
previous years and there was no significant rise in the cash and cash equivalent compared to
previous years.

Group 7