Reference no: EM133539013
Discussion Post
Question I:
In our text and video lectures, we are starting to study how companies can get and record funding. There are three ways: from Liabilities, from issuing Stocks, or from Profitable Operations.
1. Describe each of these three ways and indicate where on the financial statements you could find the information about each. Hint: It might be in more than one place.
2. Give the advantages and disadvantages for each.
3. Give an example for each and show how you would record the transaction in the accounting.
Question II:
Pick a large company you like. Find their Statement of Cash Flows on their latest annual report, (not a summary, but the actual financial statement).
1. Describe the three sections of cash flows and what they involve.
2. For each section, tell us the total amount, if it is positive or negative, and analyze what each one tells you about the company.
3. Upon studying its statement of cash flows, what does this combination of cash flows suggest to you about the firm?
4. Is there any additional information that you would like to see to better understand this company? If so, what?