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- QUESTION
Analyzing Statements of Cash Flows
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 5-10 minute presentation for company stakeholders summarizing your analysis of the statement of cash flows and the financial strengths and weaknesses of the company.
In the Form 10-K for the company you selected in the Topic 1 assignment, analyze the statement of cash flows.
Create a 5-8 slide PowerPoint presentation that summarizes your analysis and addresses the following. Include screenshot content from the statement of cash flows as needed to illustrate key findings and information.
Discuss the company's major sources of cash in each of the three sections.
Discuss the company's major uses of cash in each of the three sections.
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.
Summarize the financial strengths of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion of whether you anticipate the company will experience continued success and explain why. Only information from the statement of cash flow should be referenced.
Summarize the financial weaknesses of the business and justify your analysis based on evidence in the statement of cash flows. Include discussion of whether you anticipate the company will experience continued challenges in this area and explain why. Only information from the statement of cash flow should be referenced.
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| Subject |
Business |
Pages |
5 |
Style |
APA |
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Answer
APPLE Inc. Cash Flow Financial
Statement Analysis
Introduction
- Apple Inc. is a multinational American company that is based in Cupertino, California. The company designs, manufactures and sells electronic devices, smartphones and computers including software.
- Apple made a net profit of $59.531 billion in 2018 after registering a turnover of $265.595 billion during the same period.
- Cash flow statement is one of the major four financial company statements that are required for filling by the SEC.
Apple’s Sources of Cash:
Operating
- Net Income
- Deferred Income Tax Expense (Benefit)
- Other
- Accounts Receivable
- Vendor Non-trade receivables
- Other current and non-current
- Deferred Revenue
Apple’s Application or Use of Cash: in Operating Activities
- Major application of cash was in:
- Share-based Expenses
- Accounts payable
- Other Current and non-Current Assets
- Inventories
Apple’s Application or Use of Cash: Investing and Financing Activities
- Use of cash was in Investing Activities:
- Purchases of marketable securities
- Payments for acquisition of fixed assets
- Payments in connection with business acquisitions
- Purchases of non-marketable securities
- Others
- Financing Activities:
- Payments for taxes that are related to net share settlement of equity awards
- Payments for dividends
- Repayments of term debts
- Expenses in change of commercial paper
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