UOPX ACC 230 - Analyzing Statements of Cash Flows
Course Acc 230-
Pages 3

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Analyzing Statements of Cash Flows 4.8. Research ProblemChoose five companies from different industries and locate their statements of cash flowsfor 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.(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.STATEMENT OF CASH FLOW ANALYSISSTARBUCKS HARELYDAVIDSON RITE AID2008 2008 2008NET INCOME / STARTING LINE $ 315.5 $ - $ (1,079.0)OPERATING ACTIVITIES $ 1,258.7 $ (684.7) $ 79.4INVESTING ACTIVITES $ (1,086.6) $ (393.3) $ (2,933.7)FINANCING ACTIVITIES $ (184.5) $ 1,293.4 $ 2,904.0CASH $ (11.5) $ 190.7 $ 49.9(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.STARBUCKS2008 2007 2006Net Income/Starting Line 315.5 672.64 564.26Cash from Operating Activities 1258.70 1331.22 1131.63Cash from Investing Activities -1086.60 -1201.95 -841.04Cash from Financing Activities -184.50 -171.89 -155.33Net Change in Cash -11.50 -31.35 138.80Net Cash - Beginning Balance 281.30 312.61 173.81Net Cash - Ending Balance 269.80 281.26 312.61HARLEY DAVIDSON2008 2007 2006Net Income/Starting Line 0 933.84 1043.15Cash from Operating Activities -684.65 798.15 761.78Cash from Investing Activities -393.25 391.21 -35.26Cash from Financing Activities 1293.39 -1037.80 -637.02Net Change in Cash 190.70 164.46 97.42Net Cash - Beginning Balance 402.85 238.40 140.98Net Cash - Ending Balance 593.56 402.85 238.4RITE AID2008 2007 2006Net Income/Starting Line -1078.99 26.83 1273.01Cash from Operating Activities 79.37 309.15 417.17Cash from Investing Activities -2933.74 -312.78 -231.08Cash from Financing Activities 2903.99 33.72 -272.84Net Change in Cash 49.61 30.08 -86.75Net Cash - Beginning Balance 106.15 76.07 162.82Net Cash - Ending Balance 155.76 106.15 76.07(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.Starbucks operating cash flow has gone up in 2007 and decreased a little in 2008. The net change in cash for Starbucks looks a on the down side but previously was doing well. The net loss in cash at end of year is decreasing from the previous year. This could mean that this year there can be a gain.Harley Davidson's operating cash flow has significantly decreased from 2007. It appears the company was on an upward cycle from 2006. The decrease in cash from operating activities is probable from the lack of information supplied for net income. With the economy the way it is and not many people buying at this point could have an effect on why the net income is decreasing. With a bounced back economy in the coming year could reflect a positive gain.Rite Aid's operating cash flow has taken a significant decrease as well from previous years. Although, after taking in cash from investing and cash from financing, the net change in cash is better than it has been in previous years. Rite Aid’s net gain in cash could be from the ever growing needs in medical supplies. This also could reflect the expansion of the


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UOPX ACC 230 - Analyzing Statements of Cash Flows

Course: Acc 230-
Pages: 3
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