Purchase Solution

Cash flows and other financial statements

Not what you're looking for?

Ask Custom Question

1. Describe how the statement of cash flows is linked to each of the other financial statements (income statement and balance sheet). Also review how the other financial statements are linked with each other.
2. Caterpillar manufactures heavy machinery and equipment and provides financing for purchases by its customers. Caterpillar reported sales and interest revenue of $51324 million for 2008. The balance sheet showed current and noncurrent receivables of $15752 million at the beginning of 2009 and $18448 million at the end of 2008. Computer the amount of cash collected from customers during 2008.
3. Lowe's Companies, a retailer of home improvement products, reported cost of goods sold of $31729 million for the fiscal year ended January 30,2009. It reported merchandise inventories of $7611 million at the beginning of fiscal 2009 and $8209 million at the end of fisccal 2009. It reported accounts payable to suppliers of $3713 million at the beginning of fiscal 2009 and $4109 million at the end of fiscal 2009. COmpute themamount of cash paid to merchandise suppliers during fiscal 2009.
4.Refer to the Texas Instruments (TI) Statement of Cash Flows (Exhibit 3.23 on page 207) and review the change in one item for each of the key parts of the statement (Operations, Investing, Financing). Very briefly explain what may have occurred during Year 4.

For instance:

Operations / Increase (Decrease) in accounts payable- $(71):

Attachments
Purchase this Solution
Solution Summary

This solution discusses the relationship between the balance sheet, income statement, and statement of cash flows. It also converts sales and cost of goods sold in order to present each using the direct method. Finally, it examines one component of each element of a statement of cash flows.

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Operations Management

This quiz tests a student's knowledge about Operations Management

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Use of Cash Flow Information and Present Value

    The other side should be that present value measurement increases the usefulness and comparability of financial statements. There are several uses of estimated future cash flows as a basis for measuring an asset or liability.

  • Balance sheets / income statements

    What do statements of cash flows communicate? The statement of cash flows provides information about cash receipts and cash payments of an entity during a period.

  • Principles of Accounting Financial Statements

    Finally, based on the financial statements and ratio analysis of the company's cash position, liquidity and profitability, the company's financial performance improved. For example, its cash position increased by more than half a billion US dollars.

  • The financial statements of a company are management's, not

    What's the difference between investing activities, financing activities, and operating activities. -- Investing - shows the change in the company's cash flows from investments, including investing in the financial markets, capital assets, and other

  • Four Basic financial statements

    96757 Four Basic financial statements Discuss and identify how the four basic financial statements are important, and how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees.

  • Company Financial Analysis

    Users of financial statements, particularly investors and creditors, need information about the cash flows of a company's ability to generate positive net cash flows to meet its financial obligations and pay dividends.

  • The Interaction Between Financial Statements

    Finally, the company's cash flows from operations may be lower, so its statement of cash flows may show a lower amount for this category of cash flows. 3. Why is it essential to understand the relationship between the financial statements?

  • Statement of cash flows - Direct and indirect methods

    - Which of the two financial statements is the better one? Explain your reasoning. Show formula for computations, compare two financial statements, discuss the results, and include references.

  • In reviewing the financial statements of NanoTech Co., you d

    404317 In reviewing the financial statements of NanoTech Co., you discover that net income increased, while operating cash flows decreased for the most recent two consecutive years. Required: a.

  • Importance of pro forma financial statements

    631229 Why is it important for firms to use pro forma financial statements and ratios? Why is it important for firms to use pro forma income statements, balance sheets, cash flows, and ratios?

View More Related Solutions