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ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities - Document preview page 1

ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities - Page 1

Document preview content for ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities

ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities

A deep dive into cash flow statements for investment decision-making.

Charlotte Kelly
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ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities - Page 1 preview imageACC230Week5:InvestorAnalysisoftheStatementofCashFlows:FocusonOperatingandInvestingActivitiesACC230WEEK5DQ2DiscussionQuestion2-DueDate:Day4[Mainforum]-Postyourresponsetothefollowing:Discusshowthestatementofcashflowsisusedbyinvestors.Ifyouwereaninvestorreviewingastatementofcashflows,whatsectionwouldinterestyoumost?Why?Nowdiscussthecircumstancesinwhichothersectionsofthestatementmightbeimportanttoaninvestor.Cashflowgeneratedfromoperatingactivitiesisthemostimportantsectionforthesmoothfunctioningofthecompanyandalsopaymentofcashdividendtotheinvestor.Thereforeaninvestorwillbemoreworriedaboutcashflowsfromoperation,becausethecashflowfromoperatingactivitiesisalsousedtodeterminethefreecashflowavailabletopayoffdividend.Thefreecashflowiscalculatedbydeductingthecapitalexpenditureneededtomeetnormalgrowthofbusinessfromcashflowfromoperation.Thereforeitcanbesaidthatafteroperatingactivities,thesecondimportantpart+StudyXY
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