Cash Flow Statement – Ford Motor Company
In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm’s financial status. Include important points that an analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s cash flow from its 2012 Annual Report (Links to an external site.)Links to an external site..
Your paper must be formatted according to APA style as outlined in the Ashford Writing Center, and it must include citations and references for the text and at least two scholarly sources from the Ashford University Library.
Explanation & Answer
Running head: CASH FLOW STATEMENT
Cash Flow Statement
CASH FLOW STATEMENT
Cash Flow Statement
Preparation of a Cash Flow Statement
The statement of cash flow records the cash generated by a company during a specific
period as well as how the money made is spent. The statement organizes the report of the cash
generated by investing, operating, financing activities as well as supplemental information. The
operational activities of a company translate the items stated in the statement of income from the
accrual foundation of bookkeeping to the cash basis. Investing activities records the company's
acquisition and disposal of longstanding investments and property, plant and equipment. The
financing activities section of the statement of cash flows reports the firm’s issuance and the
repurchase of the company’s form of equity such as bonds, stocks and payment of dividends
(Miloš & Jovan, 2013). The supplemental part records the conversation of other important
information and items that do not include cash as well as the sum of income tax and interest
payable by the business.
The Cash Flow Statement and the Firm’s Financial Status
The cash flow statement shows the company's stability concerning finances. A highly
positive operational ...