Memorandum-Statement of Cash Flows Essay

MemorandumTo telephone circuitholders of Carpino CompanyCCMs. Lydia Money, Chief Executive OfficerFromW. E. Count, pecuniary AnalystDate10/5/13Re corporate Financial Position/ line of Cash FlowsI have been aerated to examine the Financial Statements of Carpino Company for the purpose of providing an objective opinion regarding organisational capacity to generate sufficient cash to continue as a going concern. Toward that end, I have examined financial statements and have prepargond the attach Statement of Cash Flows for the form Ended January 31, 2007. I am cheering to inform Carpino Company stockholders that your company has successfully begun the transition from the introductory stage to the offshoot phase of operations and your prospects for continued financial increment are excellent.Carpino Companys Statement of Cash Flows confirms that the organization enjoyed a tall performing first year of operations with a net join on of cash of $105,000. Substantial investments were made in the purchase of productive assets during Year One totally an amount of $410,000. These assets will support and facilitate growth efforts going forward. Rest assured that expenditures for inventory will decrease significantly beginning with Year Two, with primarily repair and upgrade expenditures being incurred. Stock issues were made for the purchase of productive assets in the amount of $10,000. Carpino used $325,000 in investing activities in the hopes to create higher capital in the future. This financing debt has likewise peaked during Year One.In spite of the cash outlays necessary to sufficiently introduce and sale your brand. Carpino experienced a net extend in cash of $105,000.00 at the end of Year One. Doing so speaks of spectacular management of company resources and is highly commendable. Carpino Company is now positioned for tremendous growth and the generation of increased cash flows.As stockholders, you should be pleased with the origination on which Carp inoCompany has been built. The organization is poised for great success in the foreseeable future. By closely monitoring financial operations and compend of the Statement of Cash Flows, you should expect to experience stable and profitable operations for many years to come.Thank you.Sincerely,W. E. Count, Financial AnalystCarpino CompanyStatement of Cash FlowsFor the year ended January 31st, 2007