Please explain in your own word and show all the calculation sheet. Thanks 1.Cho
ID: 2702284 • Letter: P
Question
Please explain in your own word and show all the calculation sheet. Thanks
1.Choose a publicly traded company and review its statement of cash flows. Explain what the statement of cash flows indicates about the company. Do not choose a company previously chosen by one of your classmates. Participate in follow-up discussion by choosing one of your classmates' posts and expanding upon what they have said that the statement of cash flows indicates.
2.
Choose a publicly traded company and calculate its cash flow ratios as presented in this week's lecture. Demonstrate your calculations in your post, and explain what the cash flow ratios indicate about the company. Do not choose a company previously chosen by one of your classmates. Participate in follow-up discussion by choosing one of your classmates' posts and expanding upon what they have said that the cash flow ratios indicate.
Explanation / Answer
A cash flow statement is a financial report that describes the sources of a company's cash and how that cash was spent over a specified time period. It does not include non-cash items such as depreciation. This makes it useful for determining the short-term viability of a company, particularly its ability to pay bills. Because the management of cash flow is so crucial for businesses and small businesses in particular, most analysts recommend that an entrepreneur study a cash flow statement at least every quarter.
The cash flow statement is similar to the income statement in that it records a company's performance over a specified period of time. The difference between the two is that the income statement also takes into account some non-cash accounting items such as depreciation. The cash flow statement strips away all of this and shows exactly how much actual money the company has generated. Cash flow statements show how companies have performed in managing inflows and outflows of cash. It provides a sharper picture of a company's ability to pay creditors, and finance growth.