The purpose of this assignment is to analyze a statement of cash flows to determine the financial strengths and weaknesses of a

 

The purpose of this assignment is to analyze a statement of cash flows to determine the financial strengths and weaknesses of a company.

Understanding a company’s major sources and uses of cash, and how cash is being used in the business through the analysis of the statement of cash flows, is essential. This analysis guides financial decision-making and is used to determine financial strengths and weaknesses within the company.

The accounting manager has asked you to prepare a 5- to 10-minute presentation for company stakeholders summarizing your analysis of the statement of cash flows and the financial strengths and weaknesses of the company.

Using the company that you selected from the approved list, review the Management Discussion and Analysis (MD&A) section of the annual report and the management’s discussion regarding the statement of cash flows or any discussion on the operating, investing, or financing activities of the company. In addition, refer to the statement of cash flows financial statement.

Create a PowerPoint presentation (5-8 slides) that summarizes your analysis and addresses the following. Include screenshots from the statement of cash flows as needed to illustrate key findings and information.

 

  1. Discuss the company’s major sources of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
  2. Discuss the company’s major uses of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.
  3. Discuss the major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference between the two values. Note that you may need to reconcile the differences between net income reported and the subtotal of cash provided or used by “operating” activities. What were the reconciling items, how were these accounts adjusted, and why do we not just report “net income” without adjustments?
  4. Summarize the financial strengths of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued success and explain your answer. Only information from the statement of cash flow should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.
  5. Summarize the financial weaknesses of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion as to whether or not you anticipate the company will experience continued challenges in this area and explain your answer. Only information from the statement of cash flows should be referenced. Note that this analysis will be more than just the amounts of either the cash provided or used. You may need to review the notes in the MD&A for additional information.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

see attachedMBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRICName:Date Completed:Students will complete the assignment with attention to the

see attached MBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRIC Name: Date Completed: Students will complete the assignment with attention to the criteria below. GRADE: Exceptional Proficient Basic Insufficient /Missing/Late Company Selection Minus 10 points if late Financial Statements Minus 10 points if late Company/Industry Section Horizontal Analysis 3 accounts/line items

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation must also include a SWOT matrix for the company and your recommendations for strategies to move the company forward that align with organizational structure and governance, and reflect ethical