Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion.

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Calculating the Operating Cash Flow

Using the Financial Statement Excel Template, which includes the needed data, compute the operating cash flow for Medi-Supply. Prepare Excel formulas to show your work in cells where math is involved to derive the answers.
Using the Business Report Template, address the following using Medi-Supply’s operating cash flow:

  • Interpret the quality of the operating cash flow for this company. Is the operating cash flow improving or deteriorating over time? Explain your answer, as well as why you reached your conclusion. (75–150 words, or 1–2 paragraphs)
  • Describe whether or not the company generates positive cash flow from operations. (75 words, or 1 paragraph)
  • Based on the quality of their cash flow, would you invest in the company? (75 words, or 1 paragraph)