14. Use Standard & Poor’s Market Insight website (http://www.mhhe.com/business/finance/edumarketinsight/)for this problem. Yahoo Inc. reported a $92.8 million loss in 2001.

1. Does this necessarily mean the company’s operating activities consumed cash in 2001? Explain.
2. Looking at the company’s 2001 Annual Statement of Cash Flows, did operating activities consume cash or generate cash? How much?
3. What was Yahoo’s single largest operating source of cash in 2001? Explain how this could be a source of cash.

15. Use Standard & Poor’s Market Insight website (http://www.mhhe.com/business/finance/edumarketinsight/) for this problem.

1. What was the ratio of the market value of equity to the book value of equity for eBay, Inc. at year-end 2003? (From the “Excel Analytics” tools on the left of the screen, consult “Valuation Data, Profitability.”)
2. What growth rate in sales did eBay achieve in 2002 and 2003? (From the Excel Analytics tools, consult Annual Income Statements and select the % Change tab on the spreadsheet.)
3. Might eBay’s high market-to-book ratio be due to its growth rate? Explain.