Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 29

Comparing Cash Flow Information from Two Companies
In the long run, a company must generate positive net cash flows from operating activities to survive. A business that has negative cash flows from operations will not be able to raise cash indefinitely from other sources and will eventually cease existing. Many creditors and stockholders are reluctant to invest in companies that do not generate positive cash flows from operations. However, some investors will invest in companies with negative cash flows from operations due to an optimistic future outlook for the company. Thus, investors have invested millions of dollars in Internet companies that have negative cash flows from operations.
Instructions
a. Using the search approach of your choice, locate Coca-Cola 's most recent 10K filing or annual report. View the Consolidated Statements of Cash Flows.
b. Using the search approach of your choice, locate Amazon 's most recent 10K filing or annual report. View the Consolidated Statements of Cash Flows.
c. Compare the Net Cash Provided by Operating Activities for these companies. Which company has higher Net Cash Provided by Operating Activities? Speculate why one company has much higher Net Cash Provided by Operating Activities than the other.
d. What type of company may have Negative Net Cash Provided from Operating Activities?
e. What type of company may have large Positive Net Cash Provided from Operating Activities?
Internet sites are time and date sensitive. It is the purpose of these exercises to have you explore the Internet. You may need to use the Yahoo! search engine www.yahoo.com (or another favorite search engine) to find a company's current web address.
EXHIBIT 13-1
Allison Corporation Statement of Cash Flows