Cash Flow statement: The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows: Cash flows from operating activities Cash Flows from investing activities Cash flows from financing activities (Note: Cash flows from operating activities can be prepared using direct or indirect method) To Indicate: The type of cash flow (negative or positive) for the first three years of operation

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Chapter 2, Problem 2.3C

To determine

Concept Introduction:

Cash Flow statement:

The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:

Cash flows from operating activities
Cash Flows from investing activities
Cash flows from financing activities

(Note: Cash flows from operating activities can be prepared using direct or indirect method)

To Indicate:

The type of cash flow (negative or positive) for the first three years of operation

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Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are in millions) Balance Sheet Cash and short-term Investments Accounts receivable Inventory Other current assets Long-lived assets Total assets Current liabilities Total liabilities Noncontrolling interest Shareholders equity Total liabilities and equity Income Statement. Sales Cost of sales Gross margin Earnings before interest and taxes Interest Taxes Income from discontinued operations Net income. Share price Earnings per share. Number of outstanding shares (millions) Cash Flows Cash flow from operations Capital expenditures Dividends Mmm Good Foods Incorporated 2019 $ 716 382 48 432 4,068 $5,646 $1,429 11,158 (5,512) $5,646 $ 6,486 3,558 $ 2,928 $1,637 319 336 613 $1,595 $75 5.31 356.2 $1,216 416 754

Using Statementsof Cash Flows John Marshall is employed as a bank loan officer for First State Bank. He is comparing twocompanies that have applied for loans, and he wants your help in evaluating those companies. Thetwo companies—Morris, Inc., and Walker Company—are approximately the same size and hadapproximately the same cash balance at the beginning of 2009. Because the total cash flows for thethree-year period are virtually the same, John is inclined to evaluate the two companies as equal interms of their desirability as loan candidates.Abbreviated information (in thousands of dollars) from Morris, Inc., and Walker Company is as follow: Morris, Inc. Walker Company 2009 2010 2011 2009 2010 2011Cash flows from:Operating activities $10 $13 $15 $ 8 $3 $(2)Investing activities:…