Company Cash from Operations Cash from Investing Cash from Financing Microsoft $

Question

Company             Cash from Operations    Cash from Investing        Cash from Financing

Microsoft            $7,951                                 $ (6,176)                          $ 5,541

Ebay                        9,969                                     3,579                                  (9,694)

TJ MAX                 (2,498)                                       438                                   396

Each of these companies shows a different cash flow pattern. Explain what these patterns might indicate about each company.

Explanation / Answer

Company Cash from operation Cash from investing Cash from financing Microsoft 7951 -6176 5541 Ebay 9961 3576 -9694 TJ Max -2498 438 396 Positive number indicates the section as positive cash flow from that section. Negative cash flow indicates that negative cash flow from that section Cash Frop operation: As per above TJ Max have the negative cash flow from operative activities and Microsoft and ebay have the positive cash flow Cash flow from ivnesting: In this section if the there is some purhcase of investment is more than the sale of investment than it shows negative and otherwise it shows positive So it means microsoft have purchase is more so he have the negative cash flow and other have positive cash flow Cash from financing: In this section if we issue some shares, bonds debebtures than it shows positive and if we redemmed the bonds , purchase the shares , issue of dividend thant is will be shows the negative So it means Ebay have the negative cash flow from financing activities and microsoft and TJ max have the positive cash flow

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