Finance Assignment - Statement of Cash Flows

Eat at My Restaurant – Cash Flow (60 points)

Read and complete case study 10-10, "Eat at My Restaurant" in your text. Address the following elements, which are also “required” elements at the end of the case study:

·         Comment on the difference between net cash provided by operating activities and net income.  Speculate on which number is likely to be the better indicator of long-term profitability.

·         Comment on the data reviewed for each firm.

·         Do any of these firms appear to have a cash flow problem?

Your answers should be in an essay form with an introduction and conclusion; ensure you are addressing each element clearly and thoroughly, following these guidelines: 

·         Requirement (a) of the problem should be answered in general terms; you do not need to consider the 3 firms in the case.  However, you do need to make a choice and rationalize that choice. 

·         When addressing requirement (b), you should make AT LEAST 4 observations on each firm, focusing on the cash flow ratios provided. 

·         All information should be considered when answering requirement (c).  Even if you don't think any one company is in "trouble," you should still choose a company and support your choice.   

Your paper should be 3-5 pages long and reflective of CSU-Global writing expectations.