Describe the three parts of a cash flow statement and indicate which transactions affect each part.

Part 1
Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.
The statement of cash flows reconciles the beginning cash total to the ending cash total by showing cash inflows (sources) and cash outflows (uses). The statement shows the companys ability to pay future cash obligations.
The statement is divided into three parts: operating, investing, and financing activities. In your post, address the following:
Describe the three parts of a cash flow statement and indicate which transactions affect each part.
Give examples of non-cash investing and financing transactions and state how they are reported.
Explain the difference between the cash flow statement indirect and direct method of reporting.
Part 2: 200 words
Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.
Investors and creditors cannot evaluate a companys performance by solely looking at one year of data. There are three main ways to analyze financial statements: horizontal, vertical, and ratio analysis.
Explain horizontal and vertical analysis and how they are prepared to analyze comparative income statements and balance sheets.
Explain trend analysis and common size statements.

Last Completed Projects