Disscusion #4 posting for Accounting. - For Bizzna Tutor Only

The statement of cash flows provides information about the cash inflows and outflows from operating, financing, and investing activities during an accounting period. Furthermore, the statement of cash flows is vital in that it is the only source in financial statement data for learning about the generation of cash from operations.

Based on your readings for this week:

• How can a company show a high net income and have difficulties with cash flow? How can such a situation arise?
• What may be the ramifications of this situation?

With these thoughts in mind:

Post a brief statement by Day 3 that expresses your thoughts on cash flow difficulties and their ramifications. The length of your response(s) should be a minimum of 150 words.

Read a selection of your colleagues' postings.  (I will give you the 2 students next week once they post)

Respond by Day 5 to two or more of your colleagues' postings in one or more of the following ways:

• Ask a probing question.
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• Share an insight from having read your colleague's posting.
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• Offer and support an opinion.
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• Validate an idea with your own experience.
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• Make a suggestion.
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• Expand on your colleague's posting.

Be sure to support your work with specific citations from the Learning Resources and any additional sources.

Sources to use to answer the question:

• Course Text: Understanding Financial Statements
  
  
  • Chapter 4, "Statement of Cash Flows"
    
    In Chapter 4, the authors discuss the statement of cash flows and its importance as an analytical tool. The authors reveal the four parts of a statement of cash flows as well as how to prepare a statement of cash flows.

Websites

• Prentice Hall. (2012). Companion Website for Understanding Financial Statements, 10th ed. Retrieved from
  http://wps.prenhall.com/bp_fraser_financial_10/
  
  This website serves as a companion to the course text, Understanding Financial Statements. It provides various student resources, including multiple-choice and true/false tests, PowerPoint presentations, Internet links, and more for each chapter.