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FINANCIAL PREPARING

First Trimester, SY 2012-2013

FEU–MBA

Prof. Raymond Queddeng

THE THREE INCOME ANALYSIS

Submitted by:

Group 1

Rebecca Veleidad

Agnes Masiglat

Rosalia Simborio

Victorino Samarita

Edwin David

I. Affirmation of the Problem:

1 . Identify for each with the years around the Consolidated Claims of Cash Runs of Alpha dog, Beta, and Gamma Corporation the following:

a. Every firm's major sources and uses of cash

b. Positive/Negative Variance between Cash flow by operations and net income. Key reasons for the variance. c. Was the firm able to create enough cash from operations to pay out all of it is capital expenditures? d. Performed the cash stream from operations cover the two capital expenses and gross payments, if any? at the. If it do, how achieved it invest the extra cash?

f. If perhaps not, the sources of cash to pay for the administrative centre expenditures and dividends. g. Were the working capital (current asset and current liability) accounts besides cash and cash equivalents primarily types of cash, users of cash? they would. Other major items which influenced cash runs

2 . Firm's Pattern in the subsequent:

a. Net Income

b. Income from ongoing operations

c. Capital Expenditure

d. Gross

e. Net Borrowing

farrenheit. Working Capital Account

several. Assessment of the financial power of the firm's business

II. Assumptions:

1 ) Operating money flows of the Three Cases were higher than zero and are also adequate for important program expenditures. installment payments on your Direct Method of Cash Flow Assertions were used in Alpha Corporation and Gamma Corporation while Roundabout Method of Cash Flow Statement utilized in Beta Corporation

3. Case Evaluation:

1 . Declaration of Cash Goes of Alpha, Beta and Gamma Organizations: a. Key sources and uses of cash

First Corporation| Beta Corporation| Gamma Corporation

Causes of Cash

a) Gain on sale of investment and also other assets. b) Proceeds from disposal of depreciable and other assets. c) Arises from the sale of discontinued functions. d) Proceeds from long term personal debt | a) Cash received from buyers. b) Curiosity received. c) Proceeds from issuance of prevalent stock. | a) Proceeds from issuance of debt. b) Issuance of treasury stocks | Uses of Cash

a) Expense in depreciable assets b) Investment in capitalized software c) Various other investments d) Payment of long term financial obligations e) Purchase of treasury stock f) Payment of dividends| a) Repayment to suppliers and staff. b) Payment of interest c) Payment of Income Taxes d) Capital expenses e) Acquiring marketable investments f) Repayment of seed money line of credit g) Principal payments under capital lease requirements h) Repayment of subordinated debts | a) Payment of A/P b) Payment of taxes c) Purchase of PPE d) Purchase of Kienzle business e) Payment of retired debt. f) Purchase of treasury shares. |

n. The cash stream from procedure as provided, in the matter of Alpha, Beta and Molteplicit? Co. are greater than net income. The reason for these are generally the noncash expenses just like Depreciation, Amount, Working Capital Modification, and Reclassification of Cash stream from Functioning activities to Investment activities were regarded as in the Net Income.

c. No, Alpha, Beta and Gamma Companies were not capable to generate enough cash from operations to pay for all their capital costs (ie. Expenditure in depreciable assets, purchase of Plant, House and Equipment).

d. No, the cash movement from businesses did not cover both the capital expenditures and the dividend obligations, if virtually any, but had been from trading and funding activities.

at the. Alpha, Beta and Gamma Corporations used the excess profit meeting their very own capital costs and foreseeable future requirement.

f....

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