Interest and Financing Cash Flow Assignment

5. Scuba Company is an internet firm that has experienced a period of very rapid growth in revenues over the period 2013-2016. The cash flow statements of Scuba Company are as follows: 12 Months Ending In Millions of U.S. Dollas 12/31/2016 12/31/2015 12/31/2014 12/31/2013 Net income $4,000 $3,000 $1,500 $400 Depreciaion expense 1000 300 150 Changes in working capital 600 (250) Cash from operating activities $5,600 $3,650 $1,850 $300 Capital expenditures $(3,600) $(7,000) $(3,300) $(2,000) Cash from Investing activities $(3,600) $(7,000) $(3,300) $(2,000 600 50 50 $ 400 $ 600 $ 0 $ 5 0 0

Interest and financing cash flow items Total cash dividends paid Issuance (retirement) of stock Issuance (retirement) of debt Cash from financing activities 2,400 4,400 1,200 (5) $1,200 $ 424 (2) $4,398 $3,000 Net change in cash $2,424 $(350) $2,948 $(500) a. Is Scuba company generating positive cash flow from its operations? b. How much did Scuba invest in new capital expenditures over the last four years? c. Describe Scuba's sources of financing in the financial markets over the last four years. .