In detail, describe the three major activities the statement of cash flows reports. Cite examples of cash flows for each activity.
The statement of cash flows provides details on the actual cash the company generates. The statement of cash flows is a key tool for investors. The income statement may show that the company is making a profit. However, the company may falter because it was not able to generate sufficient cash flows. The three elements of the statement of cash flows are cash flows from operating activities, cash flows from investing activities and cash flow from financing activities. ...
A key to the success of being a good investor is to understand the statement of cash flows. There are three major activities of the statement of cash flows.
Cash Flow Statement Analysis
What information can a user of financial information obtain from the statement of cash flows and which method of reporting do you prefer? What are the three major activities presented in the statement? Provide examples of each of the activities.
Is it possible to have a positive net income and negative cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this.
Is it possible to have a negative net income and positive cash flow from operations? If your answer is no, explain fully. If your answer is yes, provide two examples when one might find this.View Full Posting Details