Using the summary analysis for eApparel, Inc analyze the cash inflows and cash outflows for 2015 and 2014

Inflows (in percent of total) 2015 2014
Sales and maturities of marketable securities 20.1 22.9
Proceeds from issuance of common stock 54.5 23.5
Proceeds from long-term debt 25.4 53.6
Total Inflows 100.0 100.0
Outflows (in percent of total)
Operations 18.4 22.4
Purchases of marketable securities 19.8 21.7
Purchases of fixed assets 26.5 23.1
Repayment of long-term debt 35.3 32.8
Total Outflows 100.0 100.0
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What will be an ideal response?

eApparel, Inc. is generating all of their excess cash from sales and maturities of investments, sales of stock and long-term borrowing. The percentage of borrowing has decreased in 2015 compared to 2014, while sales of common stock have increased. It is possible that the firm is a new company and may have just gone through an initial public offering. eApparel is using cash to support operations in both years. The percentage of funds used for investments has declined. Cash from investments are most likely being used to support the negative cash from operations and the purchase of fixed assets. Long-term debt is being paid each year as well. All uses of cash are being spent in appropriate places; however, it will be important for eApparel to begin generating positive cash from operations in the future.