Define the components of the operating section

Assignment Help Financial Accounting

Reference no: EM133206241 , Length: Word Count: 5 Pages

Assignment - Statement of Cash Flow and Liquidity Paper

Competency - Interpret the components of a cash-flow statement to describe the liquidity of an organization.

Scenario - You presently work for Ford Motor Company in the Accounting and Reporting department. As part of the annual requirements of a publicly traded company, an external auditing firm just completed the required audit on Ford's financial statements. The auditing firm determined the internal control procedures Ford developed were sufficient but noted Ford Motor Company could have benefited from more detailed written procedures in preparing the statement of cash flows. You have been assigned the task of analyzing procedures for developing the statement of cash flows.

Instructions - Write an operational procedure to explain the process staff should follow to develop the different sections of the statement of cash flows using the indirect method. Use the 2018 Statement of Cash Flows for Ford Motor Company and include the following:

In the procedures:

Define the components of the operating section of the statement of cash flows and which accounts an employee should evaluate to develop this section.

Define the components of the financing section of the statement of cash flows and which accounts an employee should evaluate to develop this section.

Define the components of the investing section of the statement of cash flows and which accounts an employee should evaluate to develop this section.

Explain what non-cash items must be disclosed on the statement of cash flows.

Comment on the cash generated from operations versus other activities and why this is important to evaluating liquidity.

Reference no: EM133206241

Questions Cloud

How can companies better prepare supervisors : How can companies better prepare supervisors or lead staff to prevent accusations of unfair labor practices, and what actions should organizations take

Does sea-level rise the same way all around the planet : Does sea-level rise the same way all around the planet? Why or why not? Why is predicting changes in sea level so important?

Develop a plan to integrate the new data warehouse : Develop a plan to integrate this new data warehouse with an internet application. Revise the diagram you submitted in Wk 2 per your instructor's feedback.

Identify who are the primary leaders in the movie : Identify who are the primary leaders in the movie? What type(s) of leadership authority did they have? Boston University.

Define the components of the operating section : Define the components of the operating section of the statement of cash flows and which accounts an employee should evaluate to develop this section

Fossil ecosystems of north america : What have you learned from this book that you did not know before? How has your concept of time and evolution changed after reading this book?

What is the total amount of funding needed : EDU 33132 University of California San Bernardino. What is the total amount of funding needed to fund 20 different tubs? How will the tubs be stored?

How should healthcare professionals proactively plan : How should healthcare professionals proactively plan to update their knowledge and skills to respond to major public health issues and challenges facing them?

Strategic and operational recommendations : Brief introduction delineating the recommendations, and a separate section (with heading) for each recommendation

User Account

All Pages