Nalysis of Cash Flow and Operating Activities

As noted in Chapter 4 of your course text, a statement of cash flows is an invaluable tool for creditors, investors, and other users of financial data. A statement of cash flows provides insight into how a company generates and expends cash, a companys success in managing investing activities, and a companys ability to return value to its shareholders, among other things.

To prepare for this Application Assignment, choose five companies from different industries. Using the Internet and other resources, locate each companys statement of cash flows for the most recent year. Next, create a table to compare the dollars provided or used by operating, investing, and financing activities, as well as the overall increase or decrease in cash. Then create a second table for each company comparing this same information for each of the 3 previous years presented in that companys statement of cash flows. Include an additional column that looks at the combined cash flows for all 3 years.

To complete this Application Assignment, write a short analysis of the information gathered. Your discussion should address, among other things, whether cash flow from operating activities is large enough to cover investing and financing activities, and if not, how the company is financing its activities. Discuss differences and similarities between the companies you have chosen. Include your comparison table in your document.

Your written assignment must follow APA guidelines. Be sure to support your work with specific citations from this weeks Learning Resources and additional scholarly sources as appropriate.

Nalysis of Cash Flow and Operating Activities

Application 1: Analysis of Cash Flow and Operating Activities

As noted in Chapter 4 of your course text, a statement of cash flows is an invaluable tool for creditors, investors, and other users of financial data. A statement of cash flows provides insight into how a company generates and expends cash, a companys success in managing investing activities, and a companys ability to return value to its shareholders, among other things.

To prepare for this Application Assignment, choose five companies from different industries. Using the Internet and other resources, locate each companys statement of cash flows for the most recent year. Next, create a table to compare the dollars provided or used by operating, investing, and financing activities, as well as the overall increase or decrease in cash. Then create a second table for each company comparing this same information for each of the 3 previous years presented in that companys statement of cash flows. Include an additional column that looks at the combined cash flows for all 3 years.

To complete this Application Assignment, write a short analysis of the information gathered. Your discussion should address, among other things, whether cash flow from operating activities is large enough to cover investing and financing activities, and if not, how the company is financing its activities. Discuss differences and similarities between the companies you have chosen. Include your comparison table in your document.

Your written assignment must follow APA guidelines. Be sure to support your work with specific citations from this weeks Learning Resources and additional scholarly sources as appropriate.

Submit your Application Assignment by Day 7.