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Using the link, answer these questions about the company:

https://wwwimages2.adobe.com/content/dam/acom/en/investor-relations/pdfs/ADBE-10K-FY17-FINAL-CERTIFIED.pdf

1) How much was the net cash flow from operating activities? _____________________

i. Was it an inflow or an outflow of cash? ____________________

ii. What does this tell us about your assigned company?

2) How much was the net cash flow from investing activities? ____________________

i. Was it an inflow or an outflow of cash? _____________________

ii. What does this tell us about your assigned company?

3) How much was the net cash flow from financing activities? ______________________

i. Was it an inflow or an outflow of cash? ______________________

ii. What does this tell us about your assigned company?

4) Calculate the company’s operating cash flow to sales for both the most recent year and the prior year using the formula provided in the textbook.

i. Show your computations. Formula:

Most recent year:

Prior year:

Explain what information this ratio provides (define), and what the results mean specifically to your company.

5) Imagine that a client has just inherited $300,000 and is considering investing in the company you have analyzed by purchasing common stock. Assume your client has to choose only one company and cannot diversify his/her investment. What is your recommendation based on the work you have completed? Buy or pass? Why?

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Nestor Rutherford
Nestor RutherfordLv2
5 Aug 2018

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PROBLEM 14-8 Classification of Transactions (L014-1] Below are several transactions that took place in Seneca Company last year a. Paid suppliers for inventory purchases. b. Bought equipment for cash. c. Paid cash to repurchase its own stock. d. Collected cash from customers. e. Paid wages to employees. f. Equipment was sold for cash. g. Common stock was sold for cash to investors. h. Cash dividends were declared and paid. i. A long-term loan was made to a supplier. j. Income taxes were paid to the government. k. Interest was paid to a lender. 1. Bonds were retired by paying the principal amount due. Required: Prepare an answer sheet with the following headings: Activity Investing Transaction Operating Financing Cash Inflow Cash Outflow Etc. Enter the transactions above on your answer sheet and indicate how each of them would be clas- sified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place on X in the Cash Inflow or Cash Outflow column.

Issa Manufacturing Company was started on January 1, 2014, when it acquired $88,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $9,200 and $31,600, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,200 salvage value and an expected useful life of four years. The company paid $11,000 for salaries of administrative personnel and $15,900 for wages to production personnel. Finally, the company paid $12,690 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,300 units of product and sold 3,310 units at a price of $16 each in 2014. (Assume that all transactions are cash transactions.)

Determine the amount of total assets that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)

Determine the amount of net cash flow from operating activities that would appear on the December 31, 2014 statement of cash flows. (List cash outflow as negative amount.)

Determine the amount of net cash flow from investing activities that would appear on the December 31, 2014 statement of cash flows. (List cash outflow as negative amount.)

The ending and beginning balances of Parma Corporation's balancesheet accounts for the most recent year are listed below:......................................................................EndingBalance.......Beginning Balance Assests & Contra-Assets: Cashand cashequivalents.....................................$51,000.................$32,000Accountsreceivable.............................................$23,000..................$20,000Inventory...........................................................$62,000..................$59,000Property, plant, andequipment.............................$422,000..................$398,000Accumulateddepreciation....................................$197,000..................$167,000Liabilities and Stockholders' Equity: Accountspayable...............................................$16,000...................$12,000Accruedliabilities...............................................$33,000....................$29,000Income taxespayable.........................................$62,000....................$58,000Bondspayable...................................................$109,000..................$100,000Commonstock...................................................$25,000...................$23,000Retainedearnings..............................................$116,000.................$120,000The company's net income (loss) for the year was $0 and its cashdicidends were $4,000. It did not dispose of any propery, plant,and equipment, retire any bonds payable, or repurchase any of itsown common stock during the year. Required: Compute the change ineach noncash balance sheet account. Indicate whether the change ineach balance will be recorded in the operating, investing, orfinancing activities section of the statement of cash flows. Foritems recorded in the operating activites section, also indicatewhether the change will be added to or subtracted from net inocme.For all other items, indicate whether the change will be added as acash inflow or subtracted a a cash outflow.

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