ACC 206 Ashford Cash Flow Statement – Horizontal and Vertical Discussions
Business Finance
WK 3 DISCUSSION 1:
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Cash Flow Statement [WLOs: 1, 3, 4] [CLO: 3] |
Prior to beginning work on this discussion, read Chapter 16 in the textbook. In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).
Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.
The statement of cash flows reconciles the beginning cash total to the ending cash total by showing cash inflows (sources) and cash outflows (uses). The statement shows the company’s ability to pay future cash obligations.
The statement is divided into three parts: operating, investing, and financing activities. In your post, address the following:
- Describe the three parts of a cash flow statement and indicate which transactions affect each part.
- Give examples of non-cash investing and financing transactions and state how they are reported.
Explain the difference between the cash flow statement indirect and direct method of reporting.
WK 3 DISCUSSION 2:
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Horizontal and Vertical Analysis [WLOs: 1, 2] [CLO: 6] |
Prior to beginning work on this discussion, read Chapter 17 in the textbook. In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).
Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.
Investors and creditors cannot evaluate a company’s performance by solely looking at 1 year of data. There are three main ways to analyze financial statements: horizontal, vertical, and ratio analysis.
- Explain horizontal and vertical analysis and how they are prepared to analyze comparative income statements and balance sheets.
Explain trend analysis and common size statements.
