Question

For each of the following cash flows amounts ($ millions), identify whether the company is in the introduction, growth, maturity, or decline stage of its life cycle.

Company Operating Cash Flow Investing Cash Flow Financing Cash Flow
a $72 $2,007 $(813)
b 7 (528) 878
c (2,578) (4,198) 7,461
d (407) 5,583 (2,404)
e 2,283 (3,449) 1,909
f 6,336 3,222 (2,006)
g (403) (1,726) (3,516)
h 3,704 (2,438) 1,332

Answer 1

Question attached

Answer and Explanation:

A. Growth: company is experiencing growth as more investments are being made and securities are issued to finance it

B. Maturity: here we see a negative financing and positive investment meaning company is mature and selling investments while buying back securities previously sold at growth stage

C. Introduction

D. Growth

E. Declining

F. Introduction

G. Introduction/growrh

H. Declining