Cash flow statements – thought responses – 200 words

Reply to two prompts in 100 words each. No sites needed, these are just thoughts on the prompts. 

(Original prompt for you consideration,

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. )

Prompt 1:

A cash flow statement shows all cash inflows and outflows through an accounting period which can show if the company operationally has made good decisions on the behalf of the stockholders or if their decisions have had a negative impact on their overall cash available for growth of assets and structures, not just their revenues. Where the other financial statements mainly focus on the activities that generate earnings for the organization. By looking at The Lowes Corporation’s cash flow statement for 2020. I can see that even though a pandemic had hit they have made solid choices operationally to keep their stores open. They spent more on PPE and sanitation supplies that helped them stay open and exceed their previous two years’ sales by having an increase in net income of 85%. But their Investment activities cash flow was down by 26.76% showing that their operations plan is great but their future stability may be weakening through their poor choices of buying and selling investments in 2020. But as the pandemic has caused more people to funnel through to purchase products to improve their homes. Lowe’s did not want to invest more into an unstable market leaving their current investments to fall flat.

Prompt 2:

In financial accounting, a cash flow statement, also known as the statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.  What I have learned is a company reported earnings of $1 billion, does not necessarily mean it has that much cash in the bank but could show assets and financial statements are based on accrual accounting, which takes into account non-cash items such as buildings, equipment, and anything that can be considered monetary value. Financial statements consider non-cash items to reflect the financial health of a company more accurately. The company I chose to look up was Amazon which has a cash flow of 66 million but the company has a free cash flow of 25 million. Free cash flow is the money that can be used to pay back creditors and dividends and interest to investors. Although the company has grown throughout many years the companies dept has grown as well from over 6 million in 2017 to now 18 plus million in 2020. I do believe the company will continue to grow but it should find ways to manage the debt better. 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency