Interpreting the statement of cash flows
The following information was taken from the 2008 statements of cash flow for Agilent Technologies and Advanced Micro Devices (dollars in millions):
|
Company |
Net Income/(Loss) |
Cash from operating |
Cash from investing |
Cash from Financing |
|
Agilent |
$693 |
$756 |
$399 |
$774 |
|
AMD |
3,098 |
692 |
27 |
220 |
a. Compute the change in cash for both companies.
b. Describe the cash management profile for each company—that is, what is the source of each company”s cash, and how is each company using it?
c. Discuss why cash from operating for AMD and Agilent is greater than profits. What does the cash from financing figure tell you about the companies” activities?