Reference no: EM133006127

Understanding a company's major sources and uses of cash, and how cash is being used in the business through the analysis of the statement of cash flows, is essential. This analysis guides financial decision-making and is used to determine financial strengths and weaknesses within the company.

• The accounting manager has asked you to prepare a 5- to 10-minute presentation for company stakeholders summarizing your analysis of the statement of cash flows and the financial strengths and weaknesses of the company.

• Using the company that you selected from the approved list, review the Management Discussion and Analysis (MD&A) section of the annual report and the management's discussion regarding the statement of cash flows or any discussion on the operating, investing, or financing activities of the company. In addition, refer to the statement of cash flows financial statement.

Problem 1: Discuss the company's major sources of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.

Problem 2: Discuss the company's major uses of cash in each of the three sections of the statement of cash flows. Provide at least two major sources of cash for each section.

Problem 3: Discuss the major differences between the net income and the cash provided or used by operating activities, and explain the cause of the major difference between the two values. Note that you may need to reconcile the differences between net income reported and the subtotal of cash provided or used by "operating" activities. What were the reconciling items, how were these accounts adjusted, and why do we not just report "net income" without adjustments?