Finance 3
Go to this website and read case 10-10 Eat at my restaurant cash flow
Address the following elements, which are also “required” elements at the end of the case study:
a. 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.
b. Comment on the data reviewed for each firm.
c. Do any of these firms appear to have a cash flow problem?
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.