Description

This is a Collaborative Learning Community (CLC) assignment.

Complete this assignment in the Bongo environment by clicking on the attachment link, which will launch a new browser window.

Refer to the Course Materials for additional guidance on completing assignments using Bongo.

The purpose of this assignment is to assess the cash flow of a company by reviewing operating, investing, and financing activities.

Operating, investing, and financing activities all deal with the cash activities of the company. The cash activities provide insight into how the income, investments, and liabilities of the company will ultimately affect the statement of cash flows.

Utilizing the annual report, refer to the Notes to the Financial Statements and analyze the company’s financial statements for the last 3 years.

Analyze the changes in operating, investing, and financing activities of your company for the last 3 years using indirect methods. Write a 500-750 word overview of the statement of cash flows for the company that addresses the following questions for each type of cash activity.

Operating Activities

1.    Review the current asset balances and explain how accounts receivables and inventory have affected the cash balance for the current fiscal year.

2.    Review the current liability balances and explain how accounts payable, prepaid expenses and accrued liabilities have affected the cash balance for the current fiscal year.

3.    Indicate whether the company generates enough cash to meet its operating cash needs. Provide examples of a few ways in which management could increase operating cash flows (Hint: the operating cycle/ cash cycle).

4.    From the perspective of a supplier considering selling product through the selected company, evaluate the request to purchase product on account. What is the primary concern for selling product on account to the selected company?

Investing Activities

1.    Calculate the selected company’s free cash flows (FCF).

2.    Discuss the change in cash flows from investing activities.

3.    What assets did the company buy or sell over the last 3-year period? Indicate whether cash is being used to grow the selected company.

Financing Activities

1.    Analyze net change in financial activities. Include discussion of whether the company obtained new debt or equity financing over the last 3 years, how the company’s debt and equity changed, and whether the company paid down debt or equity in the last 3 years.

2.    Explain the pros and cons of having a large cash balance.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

The instructor will provide feedback on this assignment. Evidence of revision will be assessed on the final report.