Discussion Post

timer Asked: Mar 3rd, 2018
account_balance_wallet $10

Question description

Part 1: Must be a min of 250 words

Research one (1) publicly traded company in which you are interested using the Internet and/or Strayer databases. Review its most recent statement of cash flows and income statement on the company’s Website.

Part 2: Comment on the below post with a min of 150 words.

For a company is in the introductory phase of the corporate life cycle, positive cash flow is not expected. However, once a company reaches the maturity phase, the cash generated from operations exceeds investing needs. This is when the company should use excess cash to pay dividends, pay off debt and buy back stocks. To prevent the company from getting into the decline phase, excess cash should also be invested in new growth opportunities, acquisitions of other companies for widening the portfolio, high yield investments. This is also a good time to sue the cash to pay off pending lawsuits and invest money in the most important asset of a company, their employees.

Cash flow provides insight into a company’s cash generating ability. A&T reported Free Cash flow of 16.9 B in 2016 which is up compared to 15.87 in 2015. Also, AT&T reported Net Operating Cash Flow of 39.34B in 2016 which is up compared to 35.88 in 2015. Both these items on the Cash Flow statement indicate good future growth for AT&T. On the Income Statement, I would look at dividends to see how much cash was produced and used to pay out investors and also increase in Revenue that was up 163.79B in 2016 from 146.8B in 2015. These items on the income statement also indicate AT&T is a strong well managed company that investors should invest in.

The two items that I would suggest for investors are the Liquidity and Solvency Ratios. These ratios will allow the investor to see if the company will be able to remain liquid, and also be positioned to remain in business over the long term.

Tutor Answer

School: Cornell University




Discussion Post
Institution Affiliated



Part 1
Cash flow refers to the total amount of money that gets in and out of a business in a given
period of time. Cash flow represents receipts and payments during a given period of time. Cash
flow analysis is important in determining how many liquid assets are available to cover shortterm liabilities within a given period of time. It is common to register a negative cash flow. In
such cases, the value of payments made exceeds receipts for that period. This often happens
during the initial sta...

flag Report DMCA

Totally impressed with results!! :-)

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors