ACC 230 Week 5: Investor Analysis of the Statement of Cash Flows: Focus on Operating and Investing Activities ACC 230 WEEK 5 DQ 2 Discussion Question 2 - Due Date: Day 4 [Main forum] - Post your response to the following: Discuss how the statement of cash flows is used by investors. If you were an investor reviewing a statement of cash flows, what sectionwould interest you most? Why? Now discuss the circumstances in which other sections of the statement might be important to an investor. Cash flow generated from operating activities is the most important section for the smooth functioning of the company and also payment of cash dividend to the investor. Therefore an investor will be more worried about cash flows from operation, because the cash flow from operating activities is also used to determine the free cash flow available to pay off dividend.The free cash flow is calculated by deducting the capital expenditure needed to meet normal growth of business from cash flow from operation. Therefore it can be said that after operating activities, the second important part + StudyXY Downloaded from StudyXY.com ® + StudyXY Sd Ye. o> \ | iF ’ pr E \ 3 S Stu dy Anything This ContentHas been Posted On StudyXY.com as supplementary learning material. StudyXY does not endrose any university, college or publisher. Allmaterials posted are under the liability of the contributors. wv 8) www.studyxy.com