Cheat Sheet

Cheat Sheet - Appears in the maturity stage There is a substantial op cash inflow which is more than sufficient to cover the small investing

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Appears in the maturity stage. There is a substantial op. cash inflow, which is more than sufficient to cover the small investing outflow. Positive N/I + op. Cash flow show the co is well-established. Small amt of inv cash outflow indicates we are past growth. Due to the significant amt of op. cash inflow, the co. can repay creditors + investors resulting in a large financing cash outflow. Was able to use its excess operating cash flow to repay its investors and creditors, evidenced by its financing cash outflow. Appears in the intro phase. Net loss + neg op. cash outflow, indicates this product is not well accepted. Significant inc cash outflows show the co. is acquiring productive assets. Since the co is not generating positive op cash flows + investing heavily in PP+E, it requires substantial financing cash inflows Appears in the growth stage. Its operating cash flow has become positive, but is not sufficient to cover the significant cash outflow for investing. As a result, outside
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This note was uploaded on 06/04/2008 for the course ECON 118 taught by Professor Loster during the Spring '07 term at UCSB.

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Cheat Sheet - Appears in the maturity stage There is a substantial op cash inflow which is more than sufficient to cover the small investing

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