* Week 5 DQ questions (word count between 65-100)
1. How can management use data from the cash flow statement to improve its management of cash?
2. As an investor, how will you use information from the cash flow statement?
3. How can management use the knowledge about the company’s operating cycle and data from the cash flow statement to control cash?
4. Why are companies required to prepare a statement of cash flows?
5. Why is the statement of cash flows divided into three sections?
6. What does each section tell you about a company’s operations?
7. What are the limitations of using financial ratios and how can management maximize the use of financial ratios
8. What are the differences between horizontal analysis and vertical analysis?
9. What are some common ratios used to analyze financial information?
10.How are they used in the decision-making process?
* Financial Reporting Problem II
The purpose of this assignment is to expose you to the basic process involved in the analysis of the cash flow statement.
Resources: Appendix A of Financial Accounting: Tools for Business Decision Making
Note: This is a two part assignment.
Answer questions A-F in problem CT12-1 in Financial Accounting (p. 640).
Provide an 875-word analysis of your findings.
Include conclusions concerning the management of the company’s cash.
Complete a 1,050-word summary of findings and recommendations from the following questions:
- What is the par or stated value per share of Apple’s common stock?
- What percentage of Apple’s authorized common stock was issued at September 27, 2014?
- How many shares of common stock were outstanding at September 28, 2013, and at September 27, 2014?
- Calculate the payout ratio, earnings per share, and return on common stockholders’ equity for 2014.