Question 1: How could a firm that is very profitable on its income statement find it difficult to pay its expenses (commitments) as they come due?
The Power of Cash Flow Ratios
American Institute of Certified Public Accountants
Question 2: Explain how depreciation relates to income and cash flow.
Tying It All Together with the Flow Ratio
The Motley Fool
Question 3: Consider gains or losses on non-recurring asset sales. How could they mislead management and potential investors on a cash flow basis?
Assessing the Quality of Earnings
Mercer Capital
Question 4: As the time period under consideration increases, how would the relationship between income and cash flow change? Compare and contrast.
Mind the Gap
CFO Magazine
Question 5: Contrast the indirect and direct methods of cash flows. What is the particular value of each?
Managing Your Cash Flow
Virtual Advisor Interactive
Question 6: What benefit does a firm receive from securitization of assets such as accounts receivables? How does that impact the cash flow of a firm?
Accounts Receivable Funding
AmericanCashFlow.com