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Running Head: CASH FLOW STATEMENT RESPONSE 1

CASH FLOW STATEMENT RESPONSE 5

Cash flow statement response

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Response 1

As the post has outlined, cash flow and cash outflow bare statement that are prepared on different accounts financial statement. A c cash flow indeed plays a significant role in commutating financial status based on one number of factors. Amongst them include operations, investment and finical activities that estimate the utmost busyness value. As stated in the text, operating activity, in this case, comprises and relate to net income. There are derived from sales of goods and case that can be attained from paid merchandise. Investment activity is more used in long terms such as property and plants that require a high budget and huge financial allocation. As the post has out it, financial actives are in far and wide. In a nutshell, it may comprise of non-current liability as well as owner equity. Form a financial analysis perspective, and depression is counted as a cash flow. Its always debited and alternatively credited as accumulated depressions.

References

Rosemary Carlson. (2018, December 29). The firm's cash position through the cash flow statement. Retrieved from https://www.thebalancesmb.com/how-to-prepare-a-statement-of-cash-flows-393584

Response 2

As depicted in the post, the cash flow statement is prepared to showcase the flow of cash in different backgrounds. I must admit that it should also effectively outline sources of cash, usage and maybe allocation. The allocation includes and not limited to the investment made, sales alongside other activates that undertaken by a firm. We share the same thought on this; it is primarily used by investor's ad stakeholders who have a great interest in the company. Additionally, it reduces assumptions since it gives a concise picture of future predicts, operation and scales of profit based on facts and evaluations. As stated, there are three major classifications of cash flow based on where they're derived from. Activity is realized from operations and cash sources while investment activity is attained from selling of business equipment’ such as old machinery. Lastly, based the post has outlined, financial activity is inclusive of debentures and unsecured credits hat cane-based, I must admit that depression should not be considered as a typical tool od describing cash flow.

References

Bryce Warnes. (2019). The statement of cash flows | Boundless accounting. Retrieved from https://courses.lumenlearning.com/boundless-accounting/chapter/the-statement-of-cash-flows/