Alan Gerardo Zapata Barrón 1536215
Ruby Tuesday Inc. Cash Flow Statement Analysis
Operating Activities Section
1. Ruby Tuesday Inc. shows a small decreasing in the Operating Activities Section but still resulting in a positive subtotal, which tell us that the company keeps growing and is trying to recover their financial performance, although it has still some problems.
a) Net income: it increased only $1,534 USD in a year, and unfortunately is not that strong because the total in the depreciation account is higher than the income they received.
b) Accounts receivable: shows a really small amount of money, but is still good compared to the negative numbers they had the previous year, which means they are trying to match their collections with their sales on credit
Investing Activities Section
2. The Investing Activities Section of the company has negative balance as the ending result, and compared to the previous year, they have been investing and growing a lot in new projects and different dishes to attract new clients.
a) Property, Plant & Equipment: shows a really high negative subtotal, which demonstrates that the company is growing and expanding.
b) Acquisition of franchise and other entities: a small negative number, but compared to the previous year (as the account was on zeros), means that they have just started to expand.
Financing Activities Section
3. Ruby Tuesday presents a decrease, but still a negative result. The company is trying to strengthen their financial position while trying to manage their payment obligations since they want to be able to keep running their business by themselves.
a) Long Term Debt: has a small negative number, a huge decrease of more than $65,000 USD, but they are still trying to keep their payments up to date, which is also demonstrated in the Payments for debt account.
b) Net Payments on Revolving Credit Facility: shows a negative subtotal, as the company keeps on paying back the...