Using the Business Report Template, address the following using Medi-Supply’s income statement:
Interpret the quality of the income statement for this company. Is the income statement improving or deteriorating over time? Explain your answer, including why you reached your conclusion.
Describe whether or not this company is profitable. If the company is unprofitable, explain if it is growing fast enough for sales to outpace expenses.
Based on their income statement, would you invest in the company?
Part 3: Calculating the Operating Cash Flow
Using the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Be sure to use proper Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, address the following using Medi-Supply’s operating cash flow:
Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion.
Describe whether or not the company generates positive cash flow from operations.
