Cash%20Flow%20Questions%20You%20Should%20Be%20Able%20to%20Answer-1

Cash%20Flow%20Questions%20You%20Should%20Be%20Able%20to%20Answer-1

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QUESTIONS CONCERNING THE CASH FLOW STATEMENT THAT YOU SHOULD BE ABLE TO ANSWER . 1. How much cash did the company have at the beginning of the period? Look for the beginning balance at the bottom of the Cash Flow Statement. 2. How much cash did this company have at the end of the period? Look for the ending balance at the bottom of the Cash Flow Statement. 3. By how much did this company's cash change during the year? Look for the line stating “Increase (decrease) in cash”, or “Change in cash” at the bottom of the Cash Flow Statement. 4. What are the three major parts of the cash flow statement? (1) Cash from (used in) Operating Activities (2) Cash from (used in) Investing Activities (3) Cash from (used in) Financing Activities 5. How much cash is each of the three major types of activity providing or using? Look at the sub-total for each of the major sections of the Cash Flow Statement. If the amount is positive then it is providing cash, if it is in parentheses (negative) then it is using cash. 6. Which of the three major types of activity is providing the most cash for this company? Look at the three answers to question 4. and find the major section that has the largest positive cash flow.
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7. What are the three sources of internal cash? (a) Beginning Cash (b) Cash from the income statement (c) Cash from (or invested in) working capital 8. How much cash is each one providing ? (a) Look at the beginning cash at the bottom of the Cash Flow Statement (b) Look at the Net Income plus non-cash expenses, minus (or plus) non-operating gains or losses. (c) Calculate the changes in the non-cash working capital accounts related to operations. The amount of cash they are providing equals the decrease in Current Asset accounts plus the increase in Current Liabilities accounts. 9. Based on the changes in the non-cash working capital accounts related to operations, is this company's working capital increasing or decreasing? Explain how you arrived at your conclusion. If the change in a non-cash working capital account is
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Cash%20Flow%20Questions%20You%20Should%20Be%20Able%20to%20Answer-1

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