Alpha Corporation Essay

1) Sources of Cash Accounts receivable (payment from customers) , Proceeds from trade of assets(PP&E), getting even from sale of cease operations, Issue of Stock and long precondition debtUse of Cash acquire of inventories, Account payables (payments to suppliers) , Purchase of Assets(PP&E), Investment in capitalized software, principal payment of little(a) term debt, Repurchase of Stock, Dividends paid2) Cash flow from operations (125.2, 89.3, and 46.8) was greater than that from gelt income (- 377.9, -623.5 , and -320.6). The reason for difference is lot of non- capital expenditure much(prenominal) as depreciation, amortization, and restructuring was deducted from the revenues to come to last Income. Also, the gain from enthronisation was deducted from the Net income as it is too a non-cash item.3) No, the cash generated from operations (125.2, 89.3, and 46.8) was less than the investment in capital expenditure (129.7, 174.4, and 303.8)4) No, the cash generated from o perations (125.2, 89.3, and 46.8) was less than the total of investment in capital expenditure (129.7, 174.4, and 303.8) and dividends paid(0, 7.2, and 26.0 ).5) Not applicable6) Alpha pot used the following sources to fund capital expenditure and dividends Proceeds from Sale of assets (PP&E), proceeds from sale of discontinued operations, Issue of Stock and long term debt.7) Yes, Currents assets much(prenominal) as account receivables, stock-take, and new(prenominal) current assets and current liabilities such as Accounts payable were uses and source of cash from the working capital respectively.8) The other major items that impacted cash are payments of long term debt , and proceeds from Disposal from PP&EPart 21) Net Income- in the pull round three long time NI has decreased from -320.6 to -377.9. That is the company has been incurring change magnitude losses.2) Cash flow from operations in the last three years CFO has tripled(approx.) from 46.8 to 125.2.3) Capital expen diture Company has been investing the capitals that the quantity has steadily decreased from 303.6 to 129.7.4) Dividends Alpha corp stopped paying dividends in 1991 though it paid in the previous years.5) Net Borrowing Net borrowings were positive in 1989 but since then Alpha has been paying move out lot of long term debts resulting in negative net borrowin in 1990 and 1991.6) Working capital accounts In 1989, Alpha was buying more assets and paying off current liabilities such as account payables. However, in 1990 & 91, the disregard was reversed.Part 3Alpha seems to be going through trouble times in the last two years. It has been running into losses for either the 3 years. Though its operations are generating cash but its NI is taking a hit because of lot of depreciation/amortization and restructuring. Also, the CFO is not enough to cover the capital expenditure because of which it has been interchange assets, borrowing debts from market and issuing class B stocks.Be ta has been doing picturesque well financially. Its NI has been growing at a good gradation from 400K to 6,323K. It is in growing phase which is evident fromthe increasing investment in capital expenditure and growing inventory. It also invested excess cash in marketable securities and issued common stock as well. However, it needs to be light of growing accounts receivable from 613 to 10,837 from 1990 to 91.Gamma From 1989 -91, Gamma has gone from a net income of 1Bn to a loss of 617Mn. Even though the operation is still generating cash but the amount has been gradually decreasing. The decrease in Accounts payable and inventory indicates that the operation has taken a hit apparently because of decrease in demand. The decrease in Account receivables suggests that it has been selling less. Though it has been investing in capital the amount invested has been decreasing suggesting low confidence of management in future outlook. An equivalent amount of sales and repurchase of treas ury stocks is also not good sign.