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Microcap & Penny Stocks : Financial Shenanigans: Stocks Looking for a Fall -- Ignore unavailable to you. Want to Upgrade?

To: Reginald Middleton who wrote (71)	6/3/1998 2:52:00 PM
From: Alan Newman	Read Replies (1) \| Respond to of 108

I want to make sure I understand, because your correlation data was very interesting! You wrote: <Gross cash flow is cash flow thrown off from operations. Net cash flow is gross cash flows after investments. Free cash flow is cash flow that is left over after all necessary uses to support the going concern are satisfied.> I understand statement of cash flows, but I'm having trouble mapping your terms to a standard statement of cash flows. Below is MSFT's Statement of cash flows from their latest 10Q. Can you please give me a mapping of your terms to the terms used below? Thanks! 1997 1998 --------------------------------------------------------------- CASH FLOWS FROM OPERATIONS Net income $ 2,397 $ 3,133 Depreciation and amortization 414 776 Write-off of acquired in-process technology 0 296 Unearned revenue 1,054 2,139 Recognition of unearned revenue from prior periods (353) (1,094) Other current liabilities 377 266 Accounts receivable (252) (123) Other current assets (18) 53 -------------------------------------------------------------- Net cash from operations 3,619 5,446 -------------------------------------------------------------- CASH FLOWS USED FOR FINANCING Common stock issued 553 650 Common stock repurchased (3,101) (1,605) Put warrant proceeds 126 388 Preferred stock issued 980 0 Preferred stock dividends (7) (21) Stock option income tax benefits 482 910 -------------------------------------------------------------- Net cash used for financing (967) 322 -------------------------------------------------------------- CASH FLOWS USED FOR INVESTMENTS Additions to property, plant, and equipment (326) (415) Cash portion of WebTV purchase price 0 (190) Equity investments and other (155) (1,756) Short-term investments (895) (2,952) -------------------------------------------------------------- Net cash used for investments (1,376) (5,313) -------------------------------------------------------------- Net change in cash and equivalents 1,276 455 Effect of exchange rates on cash and equivalents (25) (51) Cash and equivalents, beginning of period 2,601 3,706 -------------------------------------------------------------- Cash and equivalents, end of period 3,852 4,110 Short-term investments, end of period 5,234 8,212 -------------------------------------------------------------- Cash and short-term investments, end of period $9,086 $12,322 ==============================================================