6.

) It is because the company doesn't mean they are profiting when they get cash because a
liquidated company with positive cash flow can change in the future or when company gets cash
in the short term(w/c cash were doesn't mean being successful in the long term )and the
company only meet short term goals. While companies that was negative cash flow have
chances to be up with investment/research and development. Which means the company are
only giving out cash with the expectation of having returns in the future.

7.) There are other factors to look forward asides from looking of the balance check and income
statement as there are more to look after in evaluating the company. Examples of the other
factors is the company's performance, growth and leadership in their field.

8.) Depreciation is the attempt to allocate initial cost of an asset over its useful life. Depreciation
generates the cash flow for the company by providing a tax cover against the reported estimate
of income.When preparing the income tax return, depreciation is part of the expense which
reduces the amount of taxable income reported to the government. if depreciation is an
allowable expense for the purposes of calculating taxable income, it is there to reduce the
amount of tax to be paid to the government. While no cash payments occur in reality, taxes will
be saved.

9.) I learned that Dell's company revenue amounts to $90.6 billion. They also reduced its
operating loss by 92 percent and generated operating income of $8.9 billion. Cash flow from
operations was $7.0 billion. During the year, net loss decreased 25 percent to $2.1 billion and
adjusted EBITDA increased 13 percent to $10.3 billion.

10.)