The primary purpose of the case is to put yourself in the shoes of a financial analyst and to analyze Merrill Lynch statement of cash flows. One key question you should have in mind is: what is the informative value of the statement of cash flows in predicting the financial distress of Merrill Lynch?
My expectation for the quality of this assignment will be the same as those of a stock recommendation analysis you would address to a potential institutional investor (either on the buy or sell-side). That means the document should be succinct well organized and written.
Key Case Questions
2. Analyze the cash flows provided (used) by operating activities.
3. Analyze the cash flows provided (used) by investing activities.
4. Analyze the cash flows provided (used) by financing activities.
5. Evaluate the cash situation at year end and assess the informative value of the statement of cash flows.