rule-of-thumb in evaluating the cash flows of an organization is: The cash flows from operations should be positive, and increasing each year and ideally should be sufficient to cover any negative cash flows from investing activities.
How would you evaluate China Trade in terms of cash flows, in light of this rule-of-thumb measure?

The cash flow statements have Direct and Indirect methods of cash flow.

The Direct method reports the cash receipts and cash disbursements and deducts the latter from the former stating difference.

The Indirect method uses net-income as a starting point making adjustment for non-cash based and cash-based transactions.

Both methods here on their balance sheet show a $3,000 loss in operation activities. The rule of thumb heuristic is that cash flow from operation should be positive, increasing each year and ideally there should be sufficient cash flows s to cover any negative cash flows from investing activities.

China Trade shows no….

Nike
In its 2016 Form 10-K, on page 106, Nike notes its policy with respect to depreciation as follows:

Depreciation is determined on a straight line basis for buildings and leasehold improvements over 2 to 40 years for machinery and equipment over 2 to 15 years.

Depreciation and amortization of assets used in manufacturing, warehousing, and product distribution are recorded in Cost of Sales. Depreciation and amortization of other assets are recorded in Operating Overhead Expense.

If Nike has incorrectly estimated the useful life, and the asset is impaired, it has a process for the impairment of such assets. The company would impair the asset on its remaining book value less the expected future cash flows from having the asset. If the asset is useful for longer than its book value, there is nothing that needs to be done. The purchase has been fully depreciated, so the asset has no more book value --….

Flow Inc.
Insurance settlement proceeds are treated as operating cash flows under ASC 230. Thus the receipt of the $20 million would be operating. The investment of the $20 million into the company's pension fund would also be an operating cash flow. hile normally investing money into the market is considered an investment flow, that is only when the beneficiary in the corporation. In this instance, the beneficiaries are the company's employees and the defined-benefit plan is a form of employee compensation. All employee compensation is considered an operating cash flow under ASC 230.

The flow should not be classified as an investing cash flow for two reasons. The first is that all insurance disbursements are classed as operating flows. The second is that employee benefits are also operating flows. If the funds were used to rebuild the facility, then that spending may be classed as an investing flow. However, that….

investment in a rental/real estate property. There is a one-time purchase of $10,000 in land that can subsequently be rented for a yearly $3,500 rent for a period of several years. At the end of the rental period, the investor aims to sell the land for a certain price. The longer the period of the rental is, in number of years, the more the land will degrade and, as a consequence, will be valued at a lower sum at the end of the entire period of time.
As a consequence, the several scenarios that will be taken into consideration will look at a comparison between longer years of rental vs. lower price for the final sale of the land or a shorter period for the rental period, but a higher price for the final sale at the end of the rental period.

This paper will look at three different scenarios that….

Cash asis vs. Accrual asis
The cash basis of accounting is more likely to be used by service businesses than by retail or manufacturing businesses. Service businesses usually do not need equipment and can sell a service they perform with nothing more than their own hands and minds. Think of people who are lawyers, writers, public relations and advertising personnel, and accountants.. (Edmonds, McNair, Milam, and Olds, Fundamental Financial Accounting Concepts, 4th edition, McGraw-Hill Irwin, 2002) In the cash basis of accounting, the business records are "cash in" (deposits to the bank account) called cash receipts, and "cash out" (checks) called cash disbursements. Cash receipts - Cash disbursement = Cash flow. Each month's cash flow is added to the preceding month's cash balance yielding the current month's cash balance. Unless a business is a small service company, it cannot tell if it is earning a profit if it uses cash accounting.….

financial statements by business entities. The purpose of this is so that one can understand about the business cash, how the business acquired or generated it, how it was used and in what ways and tomorrow's business plans, financial position of a business, performances and its position. The paper will go ahead to analyze if there is any significance of cash for the survival of a business and the impacts of the various financial sets. The arguments that will prevail will be based on the importance of the different financial statements to a business survival.
Cash is a crucial constituent of a business and I do agree that a business cannot survive without it. 'As a matter of fact the main aim and goal of a business is to generate cash and profits not only in the short run but also in the long-term.' (Minnery, 2006) Every business has everyday….

Looking at the instrument company that is being examined, it is clear that they have very little working capital to utilize. Where, they have a total amount in working capital of £ 15,000. As the company paid out £1,700,000 in obligations and received a total of £1,825,000. This is important, because it shows that the business is undercapitalized, based upon their low working capital figures. As a result, the company needs to remain more liquid, to be properly capitalized for future investments
Table 17.3 Solution to a working capital problem in my organization

Problem identification

Low Working Capital

Analysis (investigation)

The working capital position of the company was affected by the total amounts of cash they invested in new inventory.

Conclusion to the analysis (results of the investigation)

The business needs to be able to control their cash position, to effectively manage their working capital.

The solution, listed as a set of SMART recommendations

NA

Strengths and weaknesses of….

It helps a company understand its capabilities and plan for future budgeting strategies. In order to understand the cash flow, one must be able to conduct appropriate forecasting through thorough cash flow projections. These are done through a number of ways. One is by examining a company's receipts and disbursements directly. This is appropriate for short-term forecasting, normally of about 30 days. Additionally, there is adjusted net income, where the initial operating income is added or subtracted from the balance sheet changes. Another way to the pro-forma balance sheet, where the cash account is the primary mode of analyzing forecasting numbers. Finally, there is the accrual reversal method, where major accruals are reversed in order to statistically understand cash flows.
Session 4

Profit is incredibly important within all aspects and industries of business. Profit allows a company to find financial stability, therefore allowing it to evolve and grow. Essentially, a strong….

Using these different techniques reveals different information about the company. So for example we know that Tesco earned £67.6 billion in revenue last year, and that this is an increase of 8.1% over the previous year. This is the top line number; we can see that the bottom line number is £3.8 billion, an increase of 11.7% from the year before. This basic analysis reveals that the company has increased its revenues faster than it costs. This is valuable information for all types of stakeholders. Investors find such facts reassuring. Unionized workers may see an opportunity to take their share of the increased profits, and customers may be upset that the company is earning higher margins from them, although it is hard to see where margins might come from on a 19p can of tomatoes.
The balance sheet is used to understand Tesco's financial condition. The assets, liabilities and equity….

ABC/123 Version X
Financial Statement Review

ACC/561 Version

al-Mart's Financial Statement Review by Ellen Talley

hat is the net income for the current fiscal year?

Is it up or down from the prior year?

hy would this information be important to investors?

hat is the ending balance in stockholders' equity?

hy would a labor union potentially be interested in this information?

hat is the total value of assets?

hy would this information be important to a potential creditor?

hat is the total cash flow from operation?

hat financial statement user would find this information most important?

alMart's Income Statement

alMart's Stockholder Equity

alMart's Statement of Cash Flows

alMart's Full Balance Sheet

orks Cited

hat is the net income for the current fiscal year?

The net income per for the current fiscal year per Yahoo Finance is 16.999 billion after taxes and interest and such. This is on a net sales of 466 billion and total revenue of 469 billion. The other 3+ billion is from membership fees for al-Mart….

Companies use the income statement to show how successful the company is during specific time frames. Investors often want to know how much money is being brought in, they want to know that the company has enough funds to pay the operating expenses and any liabilities the company has.
Those same investors oftentimes wish to receive dividends on their shares of stock. They can ascertain whether the company has the means to do this by perusing the retained earnings statement. The retained earnings statement shows how much money the company has paid out, as well as how much the company has kept for future growth. If investors wish to buy a company that is going to be a strong growth company, then retained earnings is important because it will show that the company has the funds to do so.

A company's cash flow is a high priority to bankers, venture capitalists….

In order to refer to this, we need to mention that the cash flow statement for the year generally reflects three different cash flow positions or categories: cash flows from operating activities, cash flows from investing activities and cash flows from financing activities. I have discussed the interrelationship between the cash flow from operating activities and the balance sheet. The other two categories are also reflected in the balance sheet.
Indeed, the company may invest during the financial year in fixed assets, such as property or equipment. The negative difference reflected on the statement of cash flows will be noted as an increase in the total asset value on the balance sheet, that is, an increase in the value for "property, plant and equipment."

This is the same for the cash flows from financing activities, which are strictly connected to the "liabilities and owners' equity" fields on the balance sheet. The….

Balance sheet items can also be used by investors to determine the financial health of a given company. This can be done through the analysis of the relevant financial ratios including but not limited to liquidity ratios.
4. The Cash Flow Statement

Of the financial statements discussed in this text, the cash flow statement is typically the last financial statement prepared. A cash flow statement in the opinion of Cunningham et al. (2011) "shows the changes in a business' cash during an accounting period by listing the cash inflows and outflows from its operating, investing and financing activities..."

easons for Preparing the Financial Statements in the Order Above

One of the main reasons why financial statements have to be prepared in a prescribed logical order has got to do with the need to transfer some pieces of information from one financial statement into the next. In this case, entries in one financial statement….

financial statements of Barnes and Noble and Borders Group for fiscal year 2009. The companies' statements provide information about their financial health, as well as discuss plans for the coming fiscal year.
The balance sheet reveals detailed information about each company's assets, liabilities and owners' equity (net worth). It is based on the accounting equation Assets = Liabilities + Stockholders' Equity; the two sections of the balance sheet must equal each other just as they do in the equation. This equation represents the basic accounting premise: assets, the means used to operate the company, are balanced by a company's financial obligations, along with the equity investment brought into the company along with its retained earnings (Investopedia, n.d.).

As both the Barnes and Noble and Borders Group statements show, there are four main financial statements:

The balance sheet, which shows what a company owns and what it owes at a fixed point in….

Healthcare Financial Statements emphasizes on how accountants belonging to a healthcare organization make use of the accounts rule to evaluate their organization's financial statements. This paper also outlines the troubles a company could be into if its manager has no knowledge of interpreting the financial statements. This paper also highlights the steps taken by managers who have no background of finance.
Healthcare Financial Statements

All organizations whether they are linked to business, education or healthcare make excessive use of Accounts and Financial Statements to keep a check on their finances. If financial statements are not maintained then a check on the company's profit or loss or simple money expenditure cannot be analyzed. Hence, it is extremely important for healthcare organizations to acquire professional accounting services. Personnel who are in charge of the accounting department need to establish what and how the procedures will be carried out. An organization that is concerned….

Principles of Business Essay Topics

Ethics and Social Responsibility

The Importance of Ethical Decision-Making in Business
Sustainability and Corporate Social Responsibility: Balancing Profits and Planetary Health
The Role of Business in Addressing Social Issues
Whistleblower Protection and the Ethical Obligations of Employees

Innovation and Entrepreneurship

The Role of Innovation in Driving Business Growth
The Entrepreneurial Mindset: Characteristics and Erfolgsfaktoren
Creating an Innovative Work Environment
The Impact of Technology on Business Innovation

Leadership and Management

Effective Leadership Styles: Authoritarian, Democratic, and Laissez-faire
Motivating Employees: Theories and Best Practices
The Importance of Diversity and Inclusion in Management
Managing Organizational Change: Challenges and....