statement of cash flows

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satnatn87

Business Finance

Description

This case study will ask you to analyze the use of financial statements in the decision-making process.

First, interpret the functions of the financial balance sheet in assisting in management's decision-making process. How is the balance sheet related to the income statement?

Next, in an example, discuss the details and the major components and activities of the statement of cash flows. Lastly, discuss how you would use the statement of cash flows in decision making.USE THE ATTACHED DOCUMENT

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FIN 685 Case Study Two Guidelines and Rubric Financial statements are important in the financial decision-making process. That balance sheet lists what a company owns and owes and is therefore used to establish a company’s financial standing. The statement of cash flow is used to track the different cash inflows and outflows. In this case study, you will analyze the function of the balance sheet as well as the statement of cash flows of a real-world company. Prompt: Locate an example of a statement of cash flow. You may use Yahoo! Finance to help you in locating an example. Type in the name of a company in the search bar at the top of the page and click Search Finance. In the light blue menu bar on the left-hand side of the screen, locate Financials. Then click on the link to Cash Flow to download the statement. Using the example statement of cash flow, discuss the details and the major components and activities of the statement of cash flows. Also, discuss how you would use the statement of cash flows in decision making. Specifically, the following critical elements must be addressed: I. Balance Sheet a) Interpret the function of the balance sheet in management’s decision-making process. b) Discuss how the balance sheet is related to the income statement. II. Cash Flows a) Discuss the major components of the statement of cash flows. b) Discuss the major activities of the statement of cash flows. c) Discuss how you would use the statement of cash flows in decision making. Rubric Guidelines for Submission: Your paper must be submitted as a 2-page (maximum) Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least 2 sources, in addition to the textbook, cited in APA format. Critical Elements Balance Sheet: Decision-Making Process Exemplary (100%) Meets “Proficient” criteria and interpretation is comprehensive and references course readings or other academic sources Meets “Proficient” criteria and discussion is particularly comprehensive and references academic sources Meets “Proficient” criteria and descriptions are particularly comprehensive Meets “Proficient” criteria and descriptions are particularly comprehensive Proficient (90%) Interprets the function of the balance sheet in management’s decisionmaking process Needs Improvement (70%) Interprets the function of the balance sheet but lacks detail Not Evident (0%) Does not interpret the function of the balance sheet Value 18 Discusses the relation of the balance sheet to the income statement Discusses the relation of the balance sheet to the income statement but lacks detail Does not discuss the relation of the balance sheet to the income statement 18 Names and describes the major components of a statement of cash flow Names and describes the major activities of a statement of cash flow Names and describes major components but descriptions lack detail Names and describes major activities but descriptions lack detail Does not name or describe major components 18 Does not name or describe major activities 18 Cash Flows: Use in Decision Making Meets “Proficient” criteria and uses course readings to support discussion Discusses the statement of cash flow’s use in decision making Discusses use in decision making but discussion lacks detail Does not discuss use in decision making 18 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Balance Sheet: Relation to Income Statement Cash Flows: Major Components Cash Flows: Major Activities Earned Total 100%
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Explanation & Answer

Attached.

OUTLINE FOR STATEMENT OF CASH FLOWS
The attached answer entails the following parts:


Introduction



The function of the balance sheet in management’s decision making



The relation of the balance to the income statement



The major components of the statement of the cash flows



The major activities of the statement of the cash flows



The use of the statement of cash flows in decision making



References


Running head: STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS
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STATEMENT OF CASH FLOWS

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STATEMENT OF CASH FLOWS
Introduction
The aim of any business is to maximize profit. Profits are calculated by subtracting the
total cost from the total revenue. The money must be tracked to check the trend of the profits
generated by the government. As an endeavor to maximize profit, organizations usually venture
into various projects. The expense and incomes from various projects must be recorded and
tracked. As a result, the balan...

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