ACC206 week 1 discussion replies. (Do not ask for a different amount of money and do not send me chat messages)

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RESPOND – a minimum of 100 words each…. I will pick 4 discussions for you to write the response to.

#1 Lauralee Beans

WednesdayMay 31 at 6:54am

Manage Discussion Entry

What information does the cash flow statement provide that you cannot see in the other financial statements?

The cash flow statement provides information on the amounts, timing and the company’s cash inflows and outflows.  “The statement also provides information about other investing and financing activities that do not directly entail the generation or consumption of cash. Thus, the statement also provides a key source of insight about a company’s overall investing and financing actions.” (Principles of Accounting, Vol. 2).

Explain the parts of the cash flow statement.

Operating activities are the inflows and outflows of operating the business (inventory costs, production, selling of goods, etc.).  Investing activities are the investments made by the business in stocks and buying and selling of properties and goods.  Financing activities are the transactions of repaying and obtaining capital funding.

What elements of the cash flow statement do you think are most important for company management to monitor and why?

I think that all three of the elements are equally important in running a company efficiently and effectively.  If I had to choose, I would say that the operating activities are a priority.  How the business operates and how they control their spending and return on funds is what will keep the company going in the long run.

How can this document be used by investors?

“The statement also provides a key source of insight about a company’s overall investing and financing actions.” (Principles of Accounting, Vol. 2).  The statement gives investors an overall idea of how the company spends their money and how much money they have coming back in.

Wainwright, S. (Ed.). (2012). Principles of Accounting Volume 2. Retrieved May 31, 2017, from (Links to an external site.)Links to an external site.

#2 Susan Mookhram

WednesdayMay 31 at 10:01am

Manage Discussion Entry

Cash flows are actual money which is moving into and away from a business.  That being said the actual cash flow could be very different from accruals for many reasons which can include recognition of the income or debit.  It shows how changes to the balance sheet accounts and income affect cash and cash equivalents.  It also helps to break down analysis into operating, investing, and financing activities.  Operating activities include production, sale, and distribution of the firm’s products as well as the collection of the income from those actions.  Investing activities include purchase or sale of assets such as buildings, loans made to suppliers or received from customers, or payments related to mergers/acquisitions.  Financing activities include influx of cash from investors and the outflow of cash to investors in the way of dividends.  One item which is included as a foot note would be non-cash investing and financing activities such as converting debt to equity, or issuance of shares in exchange for assets.  The simplest explanation of the relationship between cash flow to investors is the fact that is shows the ability of a firm to pay the bills.  The reason this is so important to an investor as well as the corporate firm is that an investor seeks to obtain income from the investment.  Firms can only pay income in the way of dividends to their investors if they have enough income to cover their bills.  Dividends are paid to investors only after they have paid their bills.  If a firm is unable to pay their bills or seems to be unable to pay their bills timely, investors are less likely to obtain income from their investment.  I think there is no one part of the cash flow statement which is more important than another for a firm.  I say this because all parts of the cash flow add up to create a relatively complete picture for the investor.  Some investors may wish to maximize income while others wish to purchase debt in the form of bonds.

#3 Dee Dee Uranga

TuesdayMay 30 at 10:55pm

Manage Discussion Entry

The cash flow statement for Apple on 9/26/2015 shows that the cash from operating activities has good flow but the investing activities are negative. The negative investing amount shows that the company is growing. Financing activities are good. The amount of cash flow that Apple has compared to the debt shows that Apple can afford to pay its debt. The cash flow is coming from operating activities and going to investing activities.

Apple should pay down their debts to improve their cash position because their liabilities would be lower. Apple also needs to increase their proceeds from maturities of marketable securities. Proceeds from issuance of term debt have increased and need to keep increasing. This will generate more cash to grow the business. Increasing capital stock will help.

Trends from the cash flow statement reveal that Apple is increasing their cash flow through operating activities. There was a huge change in cash used in investing activities.

The cash flow statement shows that Apple repurchased less common stock and greatly increased their proceeds from the issuance of term debt. Also, change in commercial paper decreased greatly. Investments show a change but not as major of a change as operating activities.


Dee Dee Uranga

#4 Dawn Sneed

WednesdayMay 31 at 1:42pm

Manage Discussion Entry

How would you summarize Apple’s cash flow position and what does this statement tell you about where the money is coming from and where it’s going? It is possible for Apple to increase the net income and to me it looks like a lot of out flow is spent on advertising on products that isn’t necessary.

what should Apple do to improve its cash position and why?If money needs to be spent on advertising, then spend it on something that is going to really need the promotion. Sales will increase and this type of advertising will permit more cash flow. Some losses become gains. I could see maybe letting the most important part be where you invest more money. Don’t spend money on tight ends that is going to fade but yet keep up with trends and fast paced technology. Spend more money on features or security features that help. Security is very important in that it will help keep any long term issues from occurring.

What trends does the cash flow statement reveal? Statement shows the in and out flow of cash and its origin.

Does the cash flow statement reveal any major cash flow changes?There is cash spent in financing activates that shouldn’t have been possible and there are increases in cash equivalents and some decreases as well.

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