Understanding Statement of Cash Flow: Part A and Part B

Part A: Analyzing statement of cash flow of a publicly traded company

NOTE: Though both are discussing statement of cash flow, you do not need any information from part a to complete part b, nor do you need any information from part b to complete part a.
     
Part a: 
Using an indirect method statement of cash flows from a publicly traded company, discuss an item that was recorded when calculating net income, but is adjusted as an increase or decrease to determine cash provided by (used by) operating activities, specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations.

Include a screenshot of the statement of cash flows you are analyzing.

•    Must be at least 150 words
•    No particular style is required
•    Please use proper paragraph structure when responding.
•    If you have more than one main idea in your paragraph, then start a new paragraph.
•    Ensure each question has an answer
•    Include a screenshot of the statement of cash flows you used in the analyzing
•    Include in-text citation and a reference page must be attached

Part b. 

Apple is a publicly traded company that utilizes an adjusted indirect method statement of cash flow. For example, in 2019, Apple decreased the amount of cash provided as a change in operating assets in liabilities by 3,488 million (Stock Analysis on Net, 2020). Apple also increased the cash flow on operating assets and liabilities in 2018 by 34,694 million (Stock Analysis on Net, 2020). These changes allowed for a more consistence cash generated by operating activities on the cash flow statement.

Ultimately, cash flow sets the precedent of the success of a company. An indirect method takes the net income from a company’s bank statement and then adds an increase or decrease using noncash items (Tuovila, 2019). The end point being a representation and consistency in cash flow to represent a company and educate investors. Cash flow numbers shows the owners and operators of the company to where their money is coming in from and then allows them to make a plan to increase profits and maintain cash to continue to run as a company (Tuovila, 2019). 

•    Reply to this weekly post of a student (The following are some examples of what can be talked about when trying to get reach the minimal 100 word limit, however, as long as it is appropriately responding to the student’s post in part b, then you may respond in any way.  Here are some example questions: Do you agree with the cash flow method the student says apple uses….why or why not? Anything additional you can tell from the students post or from the apple report she used. Do you agree or disagree with other things the student said based on the report she used)?
•    Must be at least 100 words
•    No particular style is required
•    Please use proper paragraph structure when responding.
•    If you have more than one main idea in your paragraph, then start a new paragraph.
•    Ensure each question has an answer
•    In-text citation and a reference page must be attached