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 owned by the company, and other founds. The company’s net cash outflows are listed
as payments to other businesses, purchases of property, employee wages, interests, and taxes
(MarketWatch, 2017). Macy’s cash flow gives a pretty good picture on the real earnings power
of the company. During the past twelve months, Macy’s average cash flow per share was 6.70
percent per year with total cash flow for the months ended in July of 2017 was $107 Million
which is pretty good for the retail corporation (GuruFocus, 2017). Macy’s, Inc. has nothing
unusual on its current statement.
References
GuruFocus. (2017). Macy's Inc (NYSE:M) Free Cash Flow: $937 Mil (TTM As of Jul. 2017).
Retrieved from https://www.gurufocus.com/term/total_freecashflow/M/Free-Cash-Flow/Macys-
Inc
MarketWatch. (2017). Macy's Inc. Retrieved from
https://www.marketwatch.com/investing/stock/m/financials/cash-flow
Nobles, T., Mattison, B., & Matsumura, E. (2014). Horngren’s accounting, the financial
chapters (10 ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Review the available materials for the chapters covered this week, including the lecture, reading,
publisher materials, demonstration problems and exercises at the end of the chapters. After
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 owned by the company, and other founds. The company’s net cash outflows are listed
as payments to other businesses, purchases of property, employee wages, interests, and taxes
(MarketWatch, 2017). Macy’s cash flow gives a pretty good picture on the real earnings power
of the company. During the past twelve months, Macy’s average cash flow per share was 6.70
percent per year with total cash flow for the months ended in July of 2017 was $107 Million
which is pretty good for the retail corporation (GuruFocus, 2017). Macy’s, Inc. has nothing
unusual on its current statement.
References
GuruFocus. (2017). Macy's Inc (NYSE:M) Free Cash Flow: $937 Mil (TTM As of Jul. 2017).
Retrieved from https://www.gurufocus.com/term/total_freecashflow/M/Free-Cash-Flow/Macys-
Inc
MarketWatch. (2017). Macy's Inc. Retrieved from
https://www.marketwatch.com/investing/stock/m/financials/cash-flow
Nobles, T., Mattison, B., & Matsumura, E. (2014). Horngren’s accounting, the financial
chapters (10 ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Review the available materials for the chapters covered this week, including the lecture, reading,
publisher materials, demonstration problems and exercises at the end of the chapters. After
