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acc230 week dq 2

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Week 5 – DQ 2
The statement of cash flows helps the investor know the companies ability to generate cash flows
in the future, its capacity to meet obligations for cash, its future external financing needs, its
success in productively managing investing activities and its effectiveness in implementing
financing and investing strategies.
If I were an investor, the most important section of the statement of cash flows would be the
operating section. While it is true that it is important to consider all sources of income, the
operating section describes cash inflows and outflows related to the firm's core business.
The investor will also be concerned with the investing and financing sections. If the firm earned
cash revenues from selling capital stock would be of interest to the investor. Also, if the firm is
posting an overall loss, the investing section will let the investor know.

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Week 5 - DQ 2 The statement of cash flows helps the investor know the companies ability to generate cash flows in the future, its capacity to meet obligations for cash, its future external financing needs, its success in productively managing investing activities and its effectiveness in implementi ...
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