Question

Hi, I am looking for help in analysing the cash flow statement below.

According to the instruction.

Financing Activities * Discuss line items (not the subtotal).

You need to analyze items within each section. Do not analyze the subtotals. The analysis should be structured in the following manner: your observation of a specific item, an indication of whether this observation is favorable or unfavorable, and then a detailed explanation of your rationale (why).

The years are in the following manners: 2018 2017 2016

12 Financing Activities Cash flows provided by financing activities: Increases decreases in short-term debts, net Issuances of long-term debt, net of issuance costs Repayment of debt and debt conversion Proceeds from sales of commom stock through employee equity incentive plans Repurchase of common stock Payment of dividends to stockholders Other financing Net cash provided by (used in) financing activities 460 423 -3026 555 -10730 -5541 -748 -18607 7716 (8080) 770 (3615) (5072) (206) (15) 2734 (1500) 1108 (2587) (4925) (554) -5739 -8475

Answer 1

Cash Flow - Financing Activites
	2018$	2017$	2016$
Cash Flow provided by Financing Activity
Increase decrease in Shot term Debt( net)	460	12	-15
Issuance of Long term debt ( net issuance Cost)	423	7,716	2,734
repayment of Debt & Debt conversion	-3,026	-8,080	-1,500
Proceeds from sales of common stock Through Employee Equity Incentive Plans	555	770	1,108
Repurchase of common stock	-10,730	-3,615	-2,587
Payment to Dividend to stockholders	-5,541	-5,072	-4,925
Other financing	-748	-206	-554
Net cash Provided by ( used) Financial Activities	-18,607	-8,475	-5,739

On the basis of above cash flow form Financial Activity,

We noticed following point relates to above Cash flow financial Activity –

1. Important point to note that in 2018 –Company not raised Long term Loan in 2018. Major loan issued in 2017 . This is good point for company to Not depended on Long term loan
2. Another important point to note that company keep on paying off Debt and Debt conversion
3. Another excellent point to Note that Company is keep on Paying dividend
4. Company also repurchase of common stock ,- this mean company not dependent on Debt market and Not willing to increase debt burden into their Balance Sheet . Instead of using debt , company repurchase of common stock . definitely this money will help for company growth and expansion
5. In other case, companies additional borrow amount in from of short term debt must be set off with “ other financing charges “

Also Note that too many Repurchase of common stock is not good for company , This will dilute the ownership of existing shareholders.