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.
Using Apple Inc
- Discuss the Apply Inc major sources of cash in each of the three sections.
- Discuss the Apply major uses of cash in each of the three sections.
- Discuss Apple Inc 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 Apple Inc 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.
