Cash Flow Essay

399 words - 2 pages

Cash Flow

Greg George

December 7, 2013

Cash flow statements are important for every business. Cash flow statements tell investors, banks, and the company’s management what is going on with the company’s cash. Investors want to know if a company can and if they have paid dividends and a cash flow statement can provide this kind of information. When banks look at giving a loan to a company they look at a lot of different statements and on of them is the cash flow statement. From a cash flow statement banks can determine if a company is handling there cash intake and out flow correctly. A cash ...view middle of the document...

Each section stands for the following; “Operating activities include the cash effects of transactions that create revenues and expenses. They thus enter into the determination of net income. Investing activities include (a) acquiring and disposing of investments and property, plant, and equipment, and (b) lending money and collecting the loans.
Financing activities include (a) obtaining cash from issuing debt and repaying the amounts borrowed, and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends.”( Weygandt, J. J., Kimmel, P. D., & Kieso, D. E)
The operating activities show that a company is using their cash to make money and shows the company’s net income. Investing activities show that a company is investing back into the company by buying equipment and collecting on money owed to the company. Financing activities show that a company is paying dividends and paying loans acquired by the company on time.
All company should have a cash flow statement no matter how big or small the company is. Investors, banks, managers, and even the owners of a business need to a good cash flow statement to run a successful company.

Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Financial accounting (7th ed.). Hoboken, NJ: John Wiley & Sons.

Other assignments on Cash Flow

Wiley Weekly Essay

996 words - 4 pages , e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TAGUCHI COMPANY | Statement of Cash Flows | ------------------------------------------------- For the Year Ended December 31, 2011 | Cash flows from operating activities | | | | | $ | Adjustments to reconcile net income | | | to net cash provided by operating activities

Merger Analysis

728 words - 3 pages flow statements for 1996 through 1999. Why is interest expense typically deducted in merger cash flow statements, whereas it is not normally deducted in capital budgeting cash flow analysis? Why are retained earnings deducted to obtain the free cash flows? INCOME STATEMENT 1996 1997 1998 1999 Net sales $12,000,000 $14,400,000 $17,280,000 $20,736,000 Var. Operating Costs 9,600,000 11,520,000 13,824,000 16,588,800


254 words - 2 pages role. Maintaining cash flow is essential to keep the organization functioning on a daily basis. Data analytics can be used to conduct “Variance Analysis” which is a comparison of projected cash flow against actual cash flow. Such a comparison over different periods gives a financial analyst vital insight about cash flow requirements and helps him better anticipate times when greater cash flow is needed, for example purchasing bulk material

Go With The Flow Inc. Case

1297 words - 6 pages TO: Go With the Flow Inc. FROM: Olivia Bogle, Laura Cox, J.T. Mack, and Erica Patterson RE: Statement of Cash Flows Background Go With the Flow Inc. (Go With the Flow) designs, manufactures, and sells a large variety of mobile network and communication products. The company’s communication devices include mobile, cordless, and corded telephones. Go With the Flow’s liquidity primarily comes from the company’s cash flows, debt and

2011 Cf Forecast For Ll Requested By Bank (Finance)

516 words - 3 pages 2011 CF forecast for LL requested by bank (Finance) Our 2011 cash flow forecast assumes that the union will accept LL’s revised offer in June and the strike was only for April, 2010 which will not affect fiscal 2011 since the offer would be retroactive to April 30, 2010. Our forecast also assumes that MRL’s cash flows are excluded. Our calculations are in APPENDIX. It shows that cash flow for 2011 is forecasted to be $8,646,000

Time Value Of Money Terminology

2103 words - 9 pages referred to as “discounting” because present values are generally less than future values. Frequency of Cash Flows When using the cash flow functions, many financial calculators prompt you for both the cash flow (CFx) and then the frequency (Fx or #Times). The frequency is simple a shortcut to save both time and memory. If a cash flow occurs more than one time in a row, then you would enter the number of times that it occurs (in most cases, you


284 words - 2 pages be the same for operating and capital leases. • Cash flow statement - Total cash flow statements remain unaffected by operating and capital leases. That said, cash flow from operations will include only the interest portion of the capital-lease expense. The principal payment will be included as a cash outflow from cash flow from financing activities. As a result, capital leases will overstate CFO and understate CFF.

Statement Of Cash Flows

1644 words - 7 pages Organization The SCF is classified on the basis of the type of cash flow: •Operating activities are the principal revenue-producing activities of the enterprise and the related expenditures. * Cash inflow from operations is measured as cash received from customers or clients. * Cash outflows are those disbursements for operating activities, such as cash paid for inventories, wages and salaries, income taxes, and rent and other overhead


1076 words - 5 pages projects, methods used for project selection, weighted average cost to the firm and the cash flow that is anticipated for the project. We will also incorporate the risk into the calculations from two projects. In this report we explain our findings and recommendations about our methodology. Methodology First let’s look at the capital budgeting project process; we evaluate the firms investment project for the long term viability. “The

National Fabrics

2802 words - 12 pages Should Know Before Getting Started • The Purpose of a Cash Budget • Why Prepare a Cash Budget? 3 3 4 How to Create a Cash Budget • Time Period • Desired Cash Position • Estimated Sales and Expenses • Cash Flow Budget Worksheet 4 6 6 6 9 How to Analyze a Cash Budget Conclusion Checklist Resources 10 11 11 12 how to prepare a cash budget 3 what to expect This Business Builder will introduce you to the fundamental concepts

Econ 550

400 words - 2 pages flow | 8 | 27.5 | Market/Book | 1.3 | 1.1 | 1. What is the free cash flow for 2013? 2. Suppose Congress changed the tax laws so that Berndt’s depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? 3. Calculate the 2013 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company’s liquidity

Similar Documents

Little Bit Inc Essay

273 words - 2 pages Little Bit Inc. Statement of Cash Flows For Year Ended December 31, 2009 Cash flow from operating activities: Net income $ 5,500 Non-cash expenses included in net income: Depreciation $ 18,000 Deferred income taxes 500 Cash provided by (used for) current assets and liabilities: Accounts

Purbanchal Saving & Investment Co Operative Limit

4279 words - 18 pages Itahari, Muncipality. It helps poor and unemployed by providing loan at a lower interest rate. This co- operative ltd has provided different facilities to the member. The cash flow covers the area of study about current assets and current liabilities of a financial institution. Generally, cash flow refers to the arrangement of cash inflows and cash outflows of every co - operative institutions. Cash flow makes proper planning of cash

Income Statement Vs Cashflow Statement Essay

428 words - 2 pages Question #6 A. Briefly state how the Income Statement is different from the Cash Flow Statement. Give examples of decisions that can be made from the information provided by each of these statements? -The income statement shows how much revenue a company has earned over a period of time, which is usually for a year. The income statement also reports the costs and expenses associated with earning the revenue. At the bottom of the income

Finance, Tiebe Essay

637 words - 3 pages operating activities. (e) Compute P&G's (1) current cash debt coverage ratio, (2) cash debt coverage ratio, and (3) free cash flow for 2007. What do these ratios indicate about P&G's financial condition? (a) P&G could use the account form or report form. P&G uses the account form. (b) The techniques of disclosing pertinent information include (1) parenthetical explanations, (2) notes, (3) cross-reference and contra items, and (4