As a financial professional, you will be asked to provide financial information in the form of a memo in order to communicate it to stakeholders. Various types of financial information can be communicated in the form of a memo, including sources of cash flow, principal uses of cash flow, and an evaluation of overall cash flow.

Evaluate Stone Energy Corporation cash flow based on its SEC 10-K, and you present the information in the form of a memo.

To prepare:

o Stone Energy Corporation’s SEC 10-K, find a copy of the firm’s Statement of Cash Flow found in Item 8, “Financial Statements and Supplementary Data,” along with the major purchases found in the Property Plant & Equipment footnote. You will evaluate the Statement of Cash Flow for this Assignment—it may be helpful to print a copy for ease of reference.

Submit a 4-page memo of your findings related to cash flow. In your memo:

o Identify where the primary sources of cash flow are coming in and where the principal uses of cash flow are going out in Stone Energy Corporation’s Statement of Cash Flow.

o Evaluate the overall cash flow for Stone Energy Corporation sustainability (i.e., is the organization generating cash from its own operations, etc.) and summarize your findings.