Day: October 19, 2020

Michigan Tech Husky Investment Tournament Fall 2020—Week Four

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Welcome to week four of the Husky Investment Tournament! Continuing on with our analysis of the financial statements, we have moved on to the statement of cash flows, which shows us the cash inflows and outflows that go on within a company over the course of the year. You may have heard the statement that “cash is king” before. A company with strong cash flows will be in a better position than one that does not.

When is the statement of cash flows useful? 

Looking at selected amounts of Company XYZ financials:


Year 2019-20

Sales 10 mil 20 mil

NI 1 mil 3 mil

We can see that the company has doubled its sales in the year 2020. Sounds good, right? 


Operating CF 4 mil 1 mil

However, when looking at the statement of cash flows we see that their operating cash flow has decreased in 2020. That should raise red flags. Somehow the company was able to double their sales, but the cash they collected from operations went down. In this example, the company was probably really aggressive in their sales. They must have sold a lot more products on account rather than for cash.

To further check this assumption, you could look at the accounts receivable balance on their balance sheet. If the accounts receivable went up as well you have found out what this company is doing. 

This further illustrates the fact of how all financial statements tie together and that it is important to understand each one when it comes to investing.

In this week’s video, Trevor Salata, current MTU business student and Applied Portfolio Management Program alumnus, explains the cash flow statement and how investors can use it to gauge investment decisions.

Business Students Place Third in Annual Marketing Conference

Three student members of the Michigan Tech chapter of the American Marketing Association (AMA)—Ryan Calkins (Management), Emily Kughn (Marketing), and Jaxon Verhoff (Marketing)—recently demonstrated their marketing strategy competence at the 2020 AMA regional conference hosted virtually by the University of Wisconsin–Whitewater.

The students were selected as top-10 finalists at the online conference where more than 800 students from 64 universities participated. They went on to place third on October 9, winning a cash award of $250.

In addition to this achievement, Michigan Tech was represented in the AcuRite Digital Marketing Strategy Competition and Gartner Sales Competition, where managers from the sponsoring companies served as judges.

Although COVID-19 disrupted the learning environment, Associate Professor of Marketing, Jun Min, who advises the marketing organization on campus, states, “I am continually impressed with our students’ willingness to try something new.”