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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ACC230Week5:InvestorAnalysisoftheStatementofCashFlows:FocusonOperatingandInvestingActivitiesACC230WEEK5DQ2DiscussionQuestion2-DueDate:Day4[Mainforum]-Postyourresponsetothefollowing:Discusshowthestatementofcashflowsisusedbyinvestors.Ifyouwereaninvestorreviewingastatementofcashflows,whatsectionwouldinterestyoumost?Why?Nowdiscussthecircumstancesinwhichothersectionsofthestatementmightbeimportanttoaninvestor.Cashflowgeneratedfromoperatingactivitiesisthemostimportantsectionforthesmoothfunctioningofthecompanyandalsopaymentofcashdividendtotheinvestor.Thereforeaninvestorwillbemoreworriedaboutcashflowsfromoperation,becausethecashflowfromoperatingactivitiesisalsousedtodeterminethefreecashflowavailabletopayoffdividend.Thefreecashflowiscalculatedbydeductingthecapitalexpenditureneededtomeetnormalgrowthofbusinessfromcashflowfromoperation.Thereforeitcanbesaidthatafteroperatingactivities,thesecondimportantpart+StudyXY

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