Question

E 25 points maximum score Statement of Cash Flows • Why is the statement of cash flows a useful document? • What can creditors, investors, and other use learn from an analysis of the cash flow statement? • What are the advantages and disadvantage o having a large cash balance? • Using the same company that you chose in Week 3, analyze and report on the statement of cash flows. (Comment on operating, investing, and financing activities) Initial post due by Wednesday, [Remember to include at least one scholarly sourc in your post or comments. Source must be cited in text and full reference listed at the end of the post, both in APA format) Then comment on at least two posts from your peers within the Discussion Thread. Due by Sunday. Start Thread

Answer 1

know are in worot each Statement of cash flow document is useful for the Company to how much cash inflows out flows being made a financial year activity Cie) from operating, Investing and Financing. This statement is mandatory to be prepared & attached to financial Statements of the company. = By Analysis of cash flow statement; creditors, investors & now learn ; Other users can How much • To know company's profitability. They will get to know about company's financial health ų future prospects. Cash inflows /outflows is made during the yeare can be known. Advantages of having large cash balance: The company shall have enough balance to meet expens, even though company is running not be done. Borrowing of funds need Dis advantage. The growth of company will be get stagnant May result in bankrupt, if cash managers in losses. . do any fraud. -), operating activity in These related to components of Net income Inverting activity. Related to sale/ purchase of investments & long-term ausets Financing activities: Related to external financing sources. Cauners & lenders).