OMM 622
Cash Flow Statement – Ford Motor Company
The University of Arizona Global Campus
OMM 622 Financial Decision-Making
Cash Flow Statement – Ford Motor Company
The cash flow statement is an essential instrument for assessing a company's financial
health and performance. The cash flow statement depicts the inflow and outflow of funds inside
a business. The cash flow statement is essential for businesses since it shows internal and
external investors whether cash is available or unavailable from operations, investing, and
financing activities. This is crucial because it shows whether the company will satisfy its cash
obligations when they fall due. The purpose of a cash flow statement and how it indicates a
company's financial health will be discussed in this article. It would also include key details that
an analyst would consider while evaluating the company's financial situation. It would also look
at the cash flow of Ford Motor Company, as reported in their 2012 Annual Report.
Purpose of a Cash Flow Statement
According to Mackevičius & Senkus (2006), "Cash flows are defined as the inflows and
outflows of cash and cash equivalents, created within a certain period out of the operating,
financial, investment and extraordinary activities of the company" (p.171). Each functioning
company aspires to make a more significant profit and maintain the continuity of its operations.
To demonstrate a sensible approach to managing cash flows, it is necessary to seek assurance of
its profitability and continuity of activity. The cash flows generated by the company are
beneficial to all financial data users.
Shareholders, managers, investors, and creditors all need to see the cash flow statement.
Shareholders want information on cash flows to assess the company's potential for growth and its
solvency to assess its capacity to cover its liabilities and meet its other financial obligations.
Investors and creditors want to know if positive cash flows will enter the company and if
Cash Flow Statement – Ford Motor Company
The University of Arizona Global Campus
OMM 622 Financial Decision-Making
Cash Flow Statement – Ford Motor Company
The cash flow statement is an essential instrument for assessing a company's financial
health and performance. The cash flow statement depicts the inflow and outflow of funds inside
a business. The cash flow statement is essential for businesses since it shows internal and
external investors whether cash is available or unavailable from operations, investing, and
financing activities. This is crucial because it shows whether the company will satisfy its cash
obligations when they fall due. The purpose of a cash flow statement and how it indicates a
company's financial health will be discussed in this article. It would also include key details that
an analyst would consider while evaluating the company's financial situation. It would also look
at the cash flow of Ford Motor Company, as reported in their 2012 Annual Report.
Purpose of a Cash Flow Statement
According to Mackevičius & Senkus (2006), "Cash flows are defined as the inflows and
outflows of cash and cash equivalents, created within a certain period out of the operating,
financial, investment and extraordinary activities of the company" (p.171). Each functioning
company aspires to make a more significant profit and maintain the continuity of its operations.
To demonstrate a sensible approach to managing cash flows, it is necessary to seek assurance of
its profitability and continuity of activity. The cash flows generated by the company are
beneficial to all financial data users.
Shareholders, managers, investors, and creditors all need to see the cash flow statement.
Shareholders want information on cash flows to assess the company's potential for growth and its
solvency to assess its capacity to cover its liabilities and meet its other financial obligations.
Investors and creditors want to know if positive cash flows will enter the company and if
