Background information Anne Schippel business banker is anal
Background information:
Anne Schippel, business banker, is analyzing Dry Supply’s financial statements and has complied a statement of cash flows for 20 xz. The financing activities section is show below.
What are some questions Anne Schippel should ask Dry Supply or be thinking about to better understand the financing cash flows of the business?
DRY SUPPLY STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 12/31/20XZ ($ IN 000S)
CASH FLOW FROM FINANCING ACTIVITES
Cash flow from financing activities
Proceeds from sale of stock $0.00
Proceeds from short-term debt (9)
Proceeds from subordinated debt 9
Repayment of debt 0
Payment under capital lease obligations 0
Dividends paid 0
Net cash provided by financing activities 0
| DRY SUPPLY STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 12/31/20XZ ($ IN 000S) |
| CASH FLOW FROM FINANCING ACTIVITES |
| Cash flow from financing activities Proceeds from sale of stock $0.00 Proceeds from short-term debt (9) Proceeds from subordinated debt 9 Repayment of debt 0 Payment under capital lease obligations 0 Dividends paid 0 Net cash provided by financing activities 0 |
Solution
As per cash flow statement of Dry supply, in the heading of Cash flow from fianncing activities, Only subordinate debt taken during the period for payment of short term debt which reflect that no inlow and outlow of finance ar emade during the year and whatever earlier reasources ar available are used . It\'s also revealed that no growth opportunity available with company.
