Warren buffet cash flow statement - Essay Bishops.
The cash flow statement in the published accounts year ended 31 st December 2007 reflects this choice fully; however, there is no discussion as to why the direct method was not used. During the preparation of the accounts, CWL has made several assumptions in order to produces the cash flow statements.
The cash flow statement reports a company’s inflow and outflow of cash. While an income statement provides the information about whether or not a company made a profit, a cash flow statement can tell you whether the company generated cash. The cash flow statement also provides information regarding investing and financing activities that do.
In addition, a statement of cash flows also provides information useful in evaluating a firm’s financial flexibility. Financial flexibility is a firm’s ability to generate sufficient amounts of cash to respond to unanticipated needs and opportunities.
In a two-to three page paper(not including the title and references pages) explain the purpose of a cash flow statement and how it reflects the firm’s financial status. Include important points that analyst would use in assessing the financial condition of the company. Also, analyze Ford Motor Company’s cash flow from its 2012 Annual Report.
A cash flow statement indicates the payment and receipts of any business. Even a small error in any single entry can result in a major blunder in the company's accounts and turnover. Earning profit is one of the most important goals of any company, if not the only.
However the following is a general cash flow format you can go by to generate your statement of cash flows. Your heading will specify the time period. For example, the heading may state ”For the Three Months Ended March 31, 20XX” or ”The Year Ended December 31, 200XX”. A statement of cash flows consists of three sections.
Statement of Cash Flows. The statement of cash flows is an essential financial statement in the accounting industry. It is one of four principal financial statements required by GAAP. The primary purpose of the statement of cash flows is to provide relevant information about the cash receipts and cash payments of a business during a period.