Cash Flow Analysis

The proposed new construction for the park expansion is estimated to cost700 million dollars. While current cash can pay for the upcoming projects, liquidity and cash flow would suffer. In order to maintain a positive cash flow the recommendation is to borrow money utilizing the current available credit line. Current cash flow analysis for fiscal year 2014 from the corporate 10k is shown below

cash flow

It is very inexpensive to borrow money and the low interest rates at this point would easily be exceeded by the increase in value to the company and its business. Below is taken from the 2014 10k showing the total borrowing activity for Fiscal 2014:

borrow 10k


Companies Incorporated. Importance of Borrowing. Retrieved September 19, 2015, from


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