Comparing Cash Flows Summarized cash flow statements for 2001 are shown below for two computer industry firms:
Intel Corporation, based in Santa Clara, California, and Apple Computer, headquartered in Cupertino, California.
|
Intel |
Apple |
|
|
Net income |
$1,291 |
($25) |
|
Adjustments: |
||
|
Depreciation and amortization |
6,469 |
102 |
|
(Increase) decrease in accounts receivable |
1,561 |
487 |
|
(Increase) decrease in inventories |
24 |
22 |
|
(Increase) decrease in other assets |
898 |
118 |
|
Increase (decrease) in payables |
2,484 |
416 |
|
Changes in taxes |
84 |
36 |
|
Other adjustments |
979 |
67 |
|
Net cash provided by operating activities |
8,654 |
185 |
|
Net cash provided by (used in) investing activities |
195 |
892 |
|
Net cash provided by (used in) financing activities |
3,465 |
42 |
|
Net change in cash |
4,994 |
1,119 |
Required
Write a short report comparing the financial performance of the two companies.
In what important ways were the results for both companies similar? In what important ways were the results different?