For the Following Types of Companies,discuss Whether You Think Their

question 10

Essay

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.

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Definitions:

Nurture

The care, education, and environmental influences that contribute to an individual's development, often contrasted with genetic factors.

Biology

The investigation into living beings and life itself, focusing on their physical makeup, operational mechanisms, expansion, beginnings, evolutionary changes, and dispersion.

Experience

The knowledge or skill acquired by a person through direct involvement in or exposure to events or activities.

Neuroscience

The scientific study of the nervous system, aiming to understand the biological basis of behavior, thought, and emotion.