Cash Flow Statements’ Assignment

As people often say, “Cash is king!” Cash flow is an important indicator of a company’s financial health and a value driver. Effective cash flow management enables companies to have the most important resource on hand to meet daily needs, while preventing financial stress and potential failure.

Locate financial statements for a company of your choice and review the cash flow statement. Respond to the following in a minimum of 175 words:

What insights does the cash flow statement provide about the company’s performance, in relation to other financial statements? Cite your data source.

SAMPLE SOLUTION

A company’s cash flow indicates its financial health. In this discussion, the cash flow statements of Apple Inc. for the financial year ending September 2019 are reviewed. The cash flow statements of the company indicate that in 2019, the company realized a net income of $55,256 million, down from 59,531 in 2018 indicating a net loss of 7 percent. The company’s cash generated by operating activities dropped from $77,434 million in 2018 down to $69,391 million in 2019. The 2019 cash flow from operating activities includes 12.5 billion dollars for adjustment for depreciation and amortization, 6.1 billion dollars adjustment for share-based compensation expenses, and…