Access over 20 million homework & study documents

search

ACC 291 Week Four Reflection

Type

Homework

Rating

Showing Page:
1/4
Running head: WEEK FOUR REFLECTION 1
Week Four Reflection
ACC 291
Team B
Date
Instructor Name

Sign up to view the full document!

lock_open Sign Up
WEEK FOUR REFLECTION 2
Week Four Reflection
Team B discussed the cash flows using both indirect and direct methods. The indirect
method is easy to use and it does not cost much to prepare. Many companies use the indirect
method because it focuses on the differences between net income and net cash flow. The direct
method is a little more difficult and timely. It is very consistent with the statement of cash flows.
The direct method also shows operating cash receipts and payments.Both of these methods are
used to convert net income-accrual basis to a cash basis. They both have a long process but if
you do not account for your cash flow, the banks may not give investments to help your business.
Team B feels this cash flow works in retail very well. This is because the merchandise rotates so
fast something needs to tell inverters what is going on.
During our discussion on how to apply ratio, vertical, and horizontal analyses to financial
statements we discovered that financial statement analysis is a process for examining
relationships among financial statement elements and creating comparisons with applicable
information. We understand that the process is a valuable tool used by investors and creditors,
financial analysts, when it comes to making decision related to stocks, bonds, and other financial
apparatuses. With the use of horizontal analysis, we believe this will possess the most challenges
for the team because we have to compare financial information for two or more years. With this
process we understand that comparing any single line item such as sales revenues then we have
to read across the page. We feel more comfortable using vertical analysis as this analysis
calculates each item on a single financial statement as a percentage of a total. These figures are
listed vertically for each year on a financial statement, which makes it easier to read.

Sign up to view the full document!

lock_open Sign Up
WEEK FOUR REFLECTION 3
Team B is in the middle of the road with the ratio analysis. We understand that it enables
the analyst to compare items on a single financial statement or to examine the relationships
between items on two financial statements allowing us to examine trends for the company across
years.

Sign up to view the full document!

lock_open Sign Up
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Great content here. Definitely a returning customer.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4