--%>
Assignment Help - homework help

Analysis of cash flow statement

What do you mean by the term Analysis of cash flow statement?

E

Expert

Verified

The cash flow statement shows the net outflows and inflows of cash during the year. The cash flow statement of the company is not appealing. It has not been able to generate sufficient cash in the current period.

Most of the cash has been used in purchasing new equipments and vehicles for the company.

Secondly cash has been used to meet interest and dividend obligations. Since the company was in cash shortage it should have not taken the decision to distribute the dividend.

Operating expenses of the company are high due to which all the cash has been used to pay off expenses.

   Related Questions in Financial Accounting

  • Q : Explain Gross margin Explain Gross

    Explain Gross margin with their appropriate formulas?

    		•
  • Q : Restrictions of foreign equity ownership

    Describe various restrictions of foreign equity ownership.  Why countries impose these restrictions, explain your view on this?

    		•
  • Q : Motivations for counterparty to enter

    Specify the basic motivations for the counterparty to enter into the currency swap.

    		•
  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

    		•
  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

    		•
  • Q : Effects of foreigners portfolio

    Since early 1980s, foreign portfolio investors has purchased a considerable portion of the U.S. treasury bond issues.  Explain some short-term and long-term effects of the foreigners’ portfolio investment over the U.S. balance of payments.

    		•
  • Q : Prepare the journal entry to record the

    On December 31, 20x1, the Kat Co. purchase a group of four assets for a total cost of $1,000,000. An independent appraiser assesses the fair value of each asset asfollows: Asset Fair Value Land $350,000 Building 600,000 Equipment 200,000 Fixtures 150,000 Prepare the journal entry t

    		•
  • Q : Define Budget Manual Give a short

    Give a short introduction of the term ‘Budget Manual’?

    		•
  • Q : Theory of the comparative advantage How

    How theory of the comparative advantage relates to the currency swap market?

    		•
  • Q : Concessionary loan with APV model State

    State nature of the concessionary loan and explain how it is handled within the APV model?

    		•