How much cash did the company bring in from operations?
How much cash did the company bring in from operations?
September 7, 2020 Comments Off on How much cash did the company bring in from operations? Uncategorized Assignment-helpThe two companies that I want to do the financial statement analyses between are: (Microsoft and IBM) *Guidelines for Final Analysis Paper: > Perform vertical analysis on the income statement for all years shown for both companies and analyze the results. > Perform ratio analysis for the last two years for both companies using the ratios. ( that I will give it to you if you need it). Also compare their ratios to industry averages. > When analyzing the cash flow statement address the following questions for both companies, and evaluate the companies’ cash flows compared to the prior year: 1. How much cash did the company bring in from operations? 2. Explain why depreciation and amortization expense are added back to net income on the statement of cash flows. 3. What was the largest investing activity? 4. Indicate how much the company spent on property, plant, and equipment during the year and discuss whether this is good or bad news. 5. What were the two largest financing activities? Was cash paid out or received? 6. Is the company living within its means? Explain. 7. How much cash did the company borrow during the year? 8. How much debt did the company pay off during the year? 9. Discuss whether both companies cash flow statement reinforces the quality of earnings. > Does either company have any contingent liabilities disclosed in the notes to the financial statements and if so, discuss the circumstances. > How much does each company hold in treasury stock and how much did they purchase this year if any. > How much are the companies paying out in dividends and has this increased or decreased compared to prior years. > Discuss whether the company is using conservative accounting methods and do they have quality earnings. > Did the company follow good internal control procedures? Explain. (Hint: Examine the reports on management responsibilities, audit committee, and independent auditors.) > Did the company receive an unqualified audit opinion and if so, does this guarantee that the financial statements are free of error and financial fraud? Explain why > Which company would you be willing to invest in and why? > Which company would you be willing to buy their bonds and why?