ACC 502 Week 8 Discussion 1
Find the financial statements of a publicly traded company and
review its statement of cash flows. Of the company’s cash flows
from operating activities, investing activities, and financing
activities, which ones are net cash inflows and which are net cash
outflows? What does this indicate about the company? Do you see
anything unusual in this statement?
, The statement of cash flows provides information about the
company’s cash inflows and cash outflows. The statement
describes how the cash was used up over a specified time period.
It does not contain non-cash items like depreciation. Since
depreciation is left out, it makes it useful for determining the
company’s short-term viability and its ability to pay bills. Because
the management of cash flow is vital for businesses, most experts
indorse reviewing this statement at least every quarter. A
company's cash flows are generated from operating, investing,
and financing activities. The cash flow statement is like the
income statement as it records the company's performance over
a specified period. The difference between the two is that the
income statement also considers a non-cash accounts such as
depreciation. The cash flow statement removes all of this and
shows exactly how much actual money the company has
produced (Nobles, Mattison, & Matsumura, 2014). Cash flow
statements also demonstrate how companies have performed in
managing inflows and outflows of cash. It provides a sharper
picture of the company's ability to pay creditors, and finance its
future growth. All of the cash inflows and outflows, associated
with the work for which the company was recognized, would be
classified as an operating activity. Cash inflow means the source
of income or liquid cash where cash outflow is expense incurred
by the company. The difference in the cash inflow and cash
outflow is called net cash flow. On the Macy’s statement of cash
flow, there are three basic types of cash flow activities, and the
statement of cash flows has operating activities, investing
activities, and financing activities. Operating activities are the
ones that create revenue or expense. Investing activities increase
or decrease long-term assets. Financing activities increase or
decrease long-term liabilities and equity (Nobles, Mattison, &
Matsumura, 2014). The listed net cash inflows are the funds from
investors, payment for work done, sales of property, resources
Find the financial statements of a publicly traded company and
review its statement of cash flows. Of the company’s cash flows
from operating activities, investing activities, and financing
activities, which ones are net cash inflows and which are net cash
outflows? What does this indicate about the company? Do you see
anything unusual in this statement?
, The statement of cash flows provides information about the
company’s cash inflows and cash outflows. The statement
describes how the cash was used up over a specified time period.
It does not contain non-cash items like depreciation. Since
depreciation is left out, it makes it useful for determining the
company’s short-term viability and its ability to pay bills. Because
the management of cash flow is vital for businesses, most experts
indorse reviewing this statement at least every quarter. A
company's cash flows are generated from operating, investing,
and financing activities. The cash flow statement is like the
income statement as it records the company's performance over
a specified period. The difference between the two is that the
income statement also considers a non-cash accounts such as
depreciation. The cash flow statement removes all of this and
shows exactly how much actual money the company has
produced (Nobles, Mattison, & Matsumura, 2014). Cash flow
statements also demonstrate how companies have performed in
managing inflows and outflows of cash. It provides a sharper
picture of the company's ability to pay creditors, and finance its
future growth. All of the cash inflows and outflows, associated
with the work for which the company was recognized, would be
classified as an operating activity. Cash inflow means the source
of income or liquid cash where cash outflow is expense incurred
by the company. The difference in the cash inflow and cash
outflow is called net cash flow. On the Macy’s statement of cash
flow, there are three basic types of cash flow activities, and the
statement of cash flows has operating activities, investing
activities, and financing activities. Operating activities are the
ones that create revenue or expense. Investing activities increase
or decrease long-term assets. Financing activities increase or
decrease long-term liabilities and equity (Nobles, Mattison, &
Matsumura, 2014). The listed net cash inflows are the funds from
investors, payment for work done, sales of property, resources
