Walgreens Cash Flows Finance & Investment Case Study

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I have 7 questions that need to be answered concerning Walgreens' 2018/2017/2016 financials, more specifically the statement of cash flows. Walgreens' financial statements are all available online for all to see. They will need to be compared using 2016 and 2017 financial statements as well. These questions should be answered and put into essay form. The essay should be no more than 2 pages; more than likely it will be 2 pages once the information is consolidated. Please provide references/pages from where the financial information was obtained.

1. were there significant changes in the company's operating cash flows? what were the reasons for these changes?

2. were there significant changes in the company's investing cash flows? what were the reasons for these changes?

3. were there significant changes in the company's financing cash flows? what were the reasons for these changes?

4. what were the most significant sources of cash?

5. what were the most significant uses of cash?

6. what were the most significant reasons for the differences between net income and cash flows from operating services?

7. were there any other significant observations from your review of the statements of cash flows?

To assist you in your responses, consult both the management discussion analysis (MD&A) and notes to the financial statements sections of the annual reports.

Thank you for your help.

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Explanation & Answer

Attached.

Running head: WALGREENS CASHFLOWS SUMMARY

WALGREENS CASH FLOWS SUMMARY
Name
Institution

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WALGREENS CASH FLOWS SUMMARY

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Changes in the Net Operating Cash flow
There have been significant changes in the net operating cash flows between 2016 and
2018. There was a dip in the net operating cash flows seen in 2017 at 7.25 Billion compared to
the previous year 2016 at 7.85 billion and a rise in 2018 at 8.27 billion. The dip was contributed
by the decrease in account receivables and an increase in the account payables by 118 million.
The funds from operations also decreased in 2017 to 5.63Billion from 6.17 Billion in 2016.
Assets decreased by 54 million (Market watch 2019). A decrease in all the stated means that the
returns to the company will be lower hence will have an overall impact on the net operating cash
flows, which as the cash flows needed to sustain the day to day operations of the company. The
situation was salvaged by the increase in inventories and account receivables in 2018 which led
to a significant increase in the net operating cash flows.
Changes in the investing Cash flows
There are also significant changes in net investment cash flows. The trend in the changes
is similar to that of the net operating cash flows. There was a dip in 2017 at 843 million
compared to 2016 at 3.5 billion and later on the rise in 20...


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