Question

Hi, I am looking for help in analysing the cash flow statement below. According to the instruction.

Operating Activities * Discuss the trend in the cash flows from operating activities. How could the company improve their ability to generate cash flow internally?

The analysis should be structured in the following manner: your observation of a specific item, an indication of whether this observation is favorable or unfavorable, and then a detailed explanation of your rationale (why).

File Home Insert Page Layout Formulas Data Review View Help QuickBooks Search Share X === a Wrap Text AutoSumA Times New Roma BIU - 12 - AA - A 0 E General $ % Paste" Merge & Center - 48.00 Insert Delete Format Fill Clear Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter - Select Clipboard Font Alignment Number Cells Editing A54 x V for A D E F G H I J K L B C Dollar Amount (Millions) 2018 2017 2016 $ 3,433$ 5,560 $ 15,308 21,053 $ 9,601 $ 10,316 75201 1546 1565 155 260 -497 -1749 6,7521 1,358 1,377 (2,583) 476 For the year ending December 31 Operating Activities 4 Cash and cash equivalents, beginning of period Cash flow provided by operating activities 6 Net Income 7 Adjustments to reconcile net income to net cash: 8 Depreciation 9 Share-based compensation 10 Amortization of intangibles 11 Gain losses on equity investments, net 12 Loss on debt conversion and extinguishment 13 Gain losses on divestitures 14 Deferred taxes 15 Changes in assets and liabilities: 16 Account receivable 17 Inventories 18 Account payable 19 Accrued compensation and benefits 20 Customer deposit and prepaid supply agreements 21 Income taxes payable and receivable 22 Other assets and liabilities 23 Total adjustments 24 Net cash provided by operating activities Sheet1 6,266 1,444 1,524 (432) (387) 1,548 257 65 182 291 -1714 -214 211 -260 1367 148 41 8,379 29.432 (781) (1,300) 191 311 1,105 5,230 (788) 12,509 $ 22.110 / $ 1,382 $ $ $ $ 394 11,492 21.808 Select destination and press ENTER or choose Paste @ J -—

Answer 1

4 Operating cash flow It is the amount generated by the regular operating activities of a busnes within a specific time. period. Wher more operating cash flow is there there is any wege of cash. To order to isprove the cash floro internally the company needs to improve the sales, where there are more accounts Recuvable and less borrowings In the giver problem of 3 years The Net income has increated hom & Year 2017 - 2018 but decreased from 2016-2017 as a The company should focus on Equity invesments where there is a los of &(2583) million in 2017 but improved in 2018,

→ In 2014, the company performed w orse in both Gain losses on eauty investments, Accounts recenable Accout payable & other arch? liabilities - More, eves the accounts recervable, Con the Debtors Creditors cash receipts from the should be increased should be decreased. Equity investments should be made po low risk