Examlex
For the following types of companies,discuss whether you think their cash flows from operations,investing,and financing will be positive (the activity provides cash)or negative (the activity uses cash).Provide support for your answer.
1.Tech Corporation is a developer of computer software for the gaming industry.The company recently launched its first software title.The company is expanding its operations by hiring additional developers and administrative staff.The company is not yet profitable,but expects to break even within two years.Investors view it as having a first mover advantage and have been happy to invest in the company.
2.Midwest Corporation is a supplier to the agricultural industry.The company is experiencing its 25th year of profitability,but is concerned that sales have contracted for the fifth year in a row.Midwest prides itself in paying dividends and having no debt on its balance sheet.
3.Semi Inc.manufactures semiconductors.The company has just introduced its ninth new product and is the leader in market share for the industry.The company continues to invest in research and development and expand by purchasing competitors.The company has yet to pay dividends,but is considering it in the future.The company's largest current asset is cash,due to its high profit margin.
Negative Feedback Loop
A regulatory mechanism in which a system responds in a way that reverses the direction of a change, helping to maintain stability or equilibrium.
Mathematical Models
Quantitative representations of real-world phenomena constructed using mathematical language and symbols to predict or analyze behavior and events.
Canadian Journal Of Zoology
A peer-reviewed scientific journal that publishes research in the field of zoology, particularly concerning animal biology.
Alternative Hypothesis
A statistical hypothesis that suggests there is a difference or relationship between two variables, as opposed to the null hypothesis, which suggests there is no effect or relationship.
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