1. Writing Skills Problem
Write a short article (250 words) for a local business publication in which you explain why cash flow from operations is important information for small business owners.
2. Research Problem
Choose five companies from different industries and locate their statements of cash flows for the most recent year.
(a) Create a table to compare the dollars provided or used by operating, investing, and financing activities, as well as the overall increase or decrease in cash.
(b) Create a second table for each company comparing this same information for each of the three years presented in that company's statement of cash flows. Include an additional column that looks at the combined cash flows for all three years.
(c) Write a short analysis of the information gathered. Your discussion should address, among other things, whether cash flow from operating activities is large enough to cover investing and financing activities, and if not, how the company is financing its activities. Discuss differences and similarities between the companies you have chosen.