Cash Flow AnalysisThe two companies selected by our team were Lester and Shang-wa electronics. We will examine each company's cash flow and attempt to identify the amount of cash generated from operating, investing and financing activities. Next, we will identify some important intervening events that affected the company's cash position and explain the apparent strategies of both companies. We will review some goals from week two and discuss some additional ideas and questions that may have arisen. Finally, although it was not obligatory, we will attempt to describe the optimal solution assuming that Lester and Shang-wa reach an agreement. We will first look at the case of Lester Electronics: 2003 2004 End of year net profit 14,718 30,010 They wrote down 10,629 12,264 Accounts receivable was 51,799 64,719 They sold 19,200 in inventory 27,032 Other assets totaled 1,867 1 126Liabilities currents totaled 15,358 (5,245)